Home Buying in Newnan>Question Details

audrey.austin, Home Buyer in Newnan, GA

are there resources or help given to families strugling to buy a home after havng had a foreclosure 4 years ago?

Asked by audrey.austin, Newnan, GA Sun Sep 18, 2011

want to live in decent area, my husband makes about $40,000 annually, we have no credit cards.

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I Know Rd’s answer
If you are interested in buying in a rural area, your best bet is USDA Rural Development. They offer both direct and guaranteed loans. If it has been more than 3 years since your foreclosure and your credit has been good since then you could be considered. Direct loans are made through the local Rural Development office while guaranteed loans are made through the banks, etc. These loans usually require no down payment and are offered to first time home buyers which you would be considered if you have not owned a home in the past 3 years.The only out of pocket expenses you will usually have is your credit report fee and the first years homeowners insurance. Go to http://www.rurdev.usda.gov/LP_Subject_HousingAndCommunityAss… to find your local office. If you are in an eligible area get a recent copy of your credit report and take it to the office and ask them what they think. This process is much slower than a regular bank loan would be but well worth it in the long run. Hope this helps.
0 votes Thank Flag Link Fri Nov 11, 2011
Hi Audrey,

There is not enough information provided here to accurately respond. Depending on the type of foreclosure and circumstances that led to it, an FHA mortgage may very well be available to you. Please don't provide anymore information here. Instead reach out to someone privately about your situation. I am not a lender, but my clients who also had hardships that led to disaster a few years ago recently closed on their property. I'd welcome the opportunity to speak with you privately.

Thanks and good luck.
Solomon Greene
REALTOR® Keller Williams Realty Atlanta Partners
(678) 775-2677
0 votes Thank Flag Link Mon Sep 19, 2011

I received a copy of the most recent Fannie Mae guidelines from Shane Milne, a loan officer with First National Bank of Layton.

My previous response to your question is incorrect. I apologize for the error. The current Fannie Mae foreclosure guidelines are at 7 years (3 years if extenuating circumstances)

Here is a link to the most recent announcement:

Thank you Shane for the update . I understand Shane can and does mortgage loans in pretty much every state in the US. Shane has a proven tract record and positive endorsements from his past clients. If you are looking for a loan officer with good credentials and excellent reviews Shane is your man.

I am including a link to Shane's website: http://www.thebesthomeloans.com/home.html
0 votes Thank Flag Link Sun Sep 18, 2011
Audrey your best bet is to meet with a local and trusted loan officer who can preauilify you at no cost and let you know if there are any mortgage programs for you after looking at your financials and credit score.


Please see my blog for more tips and advice on getting a mortgage
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Sep 18, 2011
The FHA allows borrowers to purchase a home just three years after a foreclosure notice assuming you’ve kept credit clean since the negative action; for VA loans it’s a waiting period of two years.

Fannie Mae and Freddie Mac require a five-year time period (up from four years) for re-establishing credit following completion of the foreclosure action.

The time period can be shortened to three years if you can prove extenuating circumstances tied to the foreclosure such as illness or job loss.

A new mortgage to purchase a principal residence will require a minimum 10 percent down payment and a minimum credit score of 680.

The guidelines seem to change frequently. Contact a reputable lender. You may find each Bank will have their own guidelines. Try a Mortgage Broker, they will have multiple resources.
0 votes Thank Flag Link Sun Sep 18, 2011
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