After I foreclosed my home, how soon can l buy a new home? How long will it take for my credit to recover?

Asked by Alice Pak, san francisco, CA Wed Sep 16, 2009

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, ,
Sun Apr 29, 2012
I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website. http://consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm


The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.


Trevor Curran
NMLS #40140
0 votes
VirtualTourC…, Other Pro, Pleasanton, CA
Wed Sep 16, 2009
Hi Alice,
Thank you for asking this question. First of all, know that you are not alone! You can purchase a home anytime after foreclosure, the issue is not that you cannot purchase a home, the issue is you cannot qualify for a government insured loan for your new home for a period of 5-7 years, depending on circumstance, your credit, etc. And unfortunately almost all loans being written today and most likely in the future are government insured loans.

This is one of the big differences many people do not understand about the difference between a foreclosure and a Short Sale. With a Short Sale, you could qualify in 2 years and possibly less.

As for your credit, you can and should start to work on improving your credit immediately. There are many non-profit organizations that can assist you with this and you can begin to see improvements in your credit within months.

For more information or if you or anyone you know would like to attend our Free Foreclosure Prevention Seminar for Homeowners on September 30th at the Pleasanton Hilton to learn more about this and other options for homeowners facing foreclosure, please visit our website at: http://www.ForeclosurePreventionResource.com

I hope this was helpful and I wish you all the best.

All The Best,
Tim Denbo, CDPE
Certified Distressed Property Expert
Realtor, e-Pro
http://www.TimDenboHomes.com
1 vote
Rich, Other Pro, Las Vegas, NV
Fri Jan 1, 2016
It depends on many factors but, we can help raise your score using the best and fastest methods available.If interested visit IzmCreditServies.net then contact us.
0 votes
Rich, Other Pro, Las Vegas, NV
Thu Dec 31, 2015
It depends on many factors but, we can help raise your score using the best and fastest methods available.If interested visit IzmCreditServies.net then contact us.
0 votes
, ,
Fri Aug 7, 2015
Hello Alice, you may qualify ONE DAY after a foreclosure, short sale or deed in lieu with 20% down. You may qualify FHA 3 years after a foreclosure.

You may qualify FHA from fico scores between 500-579 with 10% down or minimum 580 fico score may qualify FHA 3.5% down or as low as .5% half percent down payment program from a minimum 640 fico score up to 417k.

After 3 years, you may qualify FHA from fico scores between 500-579 with 10% down or minimum 580 fico score may qualify FHA 3.5% down or as low as .5% half percent down payment program from a minimum 640 fico score up to 417k. After 4-7 years, you may consider 3% down conventional from a minimum 620 fico score or even 5% down conventional with NO Mortgage insurance (Lender paid MI) up to 417k.

If you figure out what cities/zip codes you are considering, minimum number of bedrooms and the maximum payment you are looking to achieve you can be emailed listings to study and compare. Your fico scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary.

You will need to be pre-approved if you decide to buy and to be able to meet an agent to view and submit offers on any homes of your choice. Your qualifications will be determined by your credit profile, debt to income ratios, fico scores, loan program and how much you want to invest into the down payment and closing costs.

It only takes a few dozen questions to qualify, go over your options and email you listings to study and compare. Here are some links to study as well as web reference links to many loan program pages offered...

Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
Veteran & VA/CalVet Loan Specialist
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
22+ Years Experience
BRE# 01140252
NMLS# 297251
760-486-4225
9am till 5pm by phone Monday thru Saturday, Sundays by appt., EMAIL ANYTIME 24/7
Under640FicoScoreLoans@gmail.com or HomeLoans4U@live.com
http://youtu.be/MrygA2_8fAY
http://www.trulia.com/profile/SherylArndt

If my response was helpful, consider clicking Thank, Link or Best Answer.
0 votes
Robert Krop, Agent, Frederick, MD
Fri Aug 7, 2015
Check with your local lender. There are a ton of variables that will effect the time between foreclosure and a new purchase loan.
0 votes
, ,
Sat Oct 26, 2013
3 yrs. for FHA and I have seen credit scores in the 700's in that time. Call or email for a free pre-approval in less than 10 minutes. We lend our own money and can do deals that banks turn down.

We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (855) 415-5626.

Brad Neumann
Sr. Loan Officer
Crosscountry Mortgage Inc.
Toll Free: (855) 415-5626 ext. 5734
Email: bneumann@myccmortgage.com
NMLS# 948036
0 votes
Charles D Va…, , Columbus, OH
Mon Jul 1, 2013
Three years from foreclosure completion to be elgible to finance a home loan. Call me 614-458-1903. Thanks,
0 votes
J Mario Preza, Agent, Daly City, CA
Wed Oct 20, 2010
You'll get different answers to this question on account that it depends on how you lost the house -- foreclosure, deed in lieu, short sale, cash for keys, (bankruptcy?), etc. and what you do to re-establish your credit after wards. The foreclosure will be on your credit report for seven to ten years (so I've been told by experts in the field, e.g., attorneys), so that alone will affect how you can obtain a new mortgage loan. That isn't to say you can't get a new home loan, but rather who will give it to you. Keep in mind that we're hearing about the tightening of lending practices, making a new loan all the more difficult. However, if you diligently re-establish your credit, keep your profile up to snuff, and do good by the financial measures, you ought to be able to buy again within a couple of years, even if the interest rate will most likely be higher because of the wrinkle that will still be on your credit report. I just helped a client buy a house with a similar situation, and his rate was about 2 points higher than the going rate.
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Thu Oct 7, 2010
How soon you can buy will depend heavily on the decisions you make today. For credit repair proactivity is better than inactivity, and talking to a credit counselor (not a debt consolidation) can make a big difference in your future. The timeframe requirements since the foreclosure varies with different lenders, some as little as 2 years, others it needs to be 5.
0 votes
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