Such a sad situation. But, you cannot qualify for a new loan yet. Following a foreclosure most banks will not lend funds for a period of 3+ years. The type of loan that was foreclosed makes little difference. FHA loans will re-open to you after 3 years. All other credit references must be very good!... more
Eventually you could, yes. To purchase a home with FHA financing it requires a 3 year wait from a foreclosure. There is an exception, and that is if the foreclosure was due to documented extenuating circumstances (got sick/in an accident, death in the family, victim of fraud, etc.), FHA requires that you wait at least 1 year from the foreclosure sale. If required to pay rent, then verification of an on time rental history would also be required. In any situation with a foreclosure, there needs to be re-established credit, typically defined as 12 months of on time payments as well as no new delinquencies. I recommend at least 3 trade lines (forms of credit) of 12 months of on time payments, with both installment (loans, etc.) & revolving debts (credit/store cards, etc.). If your loan doesn't fall under the extenuating circumstances category, then at least 24 months of on time payments with one of the trade lines would be very helpful to qualify as soon as the 3 years is up.
Shane Milne | Lending in all 50 states | NMLS #81195... more