Home Buying in Ramsey>Question Details

Laura, Home Buyer in Milaca, MN

How soon after a foreclosure can you purchase a house??

Asked by Laura, Milaca, MN Wed Nov 2, 2011

Help the community by answering this question:


I had a client who wanted to buy a home in Arizona, but he had a foreclosure. After researching the web I found a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure. There is no waiting period. Good to see lending options coming back.
0 votes Thank Flag Link Sun May 5, 2013
Laura, you don't have to wait any time to buy a home after a foreclosure if you can find a bank that is not selling your mortgage to Freddie Mac or Fannie Mae. The things that you are seeing in most of the posts are what you would need to wait if you go that route. In most cases, unless you have a good chunk of money to put down, you would be using a lender that follows these guidelines. Most of the private lenders that I know work on a case by case basis and would have to know much more about your situation.

Big thing to remember is that foreclosure does not mean you can't buy another home, it just limits the lenders you can use if you want to buy one within the 2-5 years.
0 votes Thank Flag Link Wed Nov 2, 2011
The length of time you will have to wait after a foreclosure until you can obtain another mortgage for a primary home will depend on your specific circumstances and the type or mortgage you will apply for.

In general, the guidelines for waiting to apply for a mortgage after a foreclosure are as follows:

Conventional Mortgages: Up to 7 years
FHA Mortgages: Up to 3 years
USDA Mortgages: Up to 3 years
VA Mortgages: Up to 2 years

If at all possible, consider a short sale or a deed-in-lieu of foreclosure. Your wait times in some cases will be less.
Web Reference: http://HomeRescuePlans.com
0 votes Thank Flag Link Wed Nov 2, 2011
geez this question gets asked just about every week. I think the best way to answer is in general 3 years because that is the rule for the greatest pool of individuals.

However, if you are interested for yourself than the best thing you can do is approach a mortgage lender right away so you know exactly what is needed if you would like to purchase a home.

And also keep in mind this is for traditional lending. You can always do a land contract or rent-to-own and negotiate directly with the seller. You want a real estate attorney on your team for this path to ensure you know the differences between each and your rights most importantly. If you are someone who thinks home values will be higher in 3 years than what is current this could be an option.
0 votes Thank Flag Link Wed Nov 2, 2011
You can purchase a house, but you probably Brocca/s answer regarding credit, etc was perfectly correct and helps point any prospective mortgage seeker in a direction of clearing their credit, debt picture, etc. However, you could get a contract for deed from a seller, or some kind of seller financing available legally in most states. Good luck. Liz ...lizfullerhomes.com
0 votes Thank Flag Link Wed Nov 2, 2011
Much depends on your situation, Freddie and Fanne Guildlines are 5-7 years. you should discuss your options with a mortgage broker and real estate agent to best determine your path back to home ownership

Good Luck!
0 votes Thank Flag Link Wed Nov 2, 2011
Much will depend on the circumstances that led you to foreclose, current income, debt, credit etc.; generally it can take anywhere from three to seven years.
0 votes Thank Flag Link Wed Nov 2, 2011
It can be confusing and deflating to consumers who have to wait 2-7 years after the unfortunate incident of a Foreclosure or Short sale or Deed in Lieu to be able to Purchase or Refinance a Home. Most of these consumers are now renting from a landlord or are living with family or friends to have a roof over their head. However there is a solution to help these consumers get back the Pride of Homeownership and Not have to wait years to buy or refinance their home again. Depending on what State you are in and how many incidents you have had, you may be able to do it Now.
Feel free to contact me so I can share the right path with a solid solutions to your new home goals.

Michael Evans
Loan Officer
NMLS: 251165
Flag Sat Jun 21, 2014
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