We had a foreclosure in 2007.

Asked by Applejolly, Conroe, TX Wed Feb 2, 2011

Our home was foreclosed on in 2007. We have been renting ever since with a very good payment history. We have also purchased 2 vehicles (brand new) since then. With the foreclosure on our record, will we ever be able to purchase a home again without having to put down a LARGE sum of money?

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6
Jay Abeya, Mortgage Broker Or Lender, Houston, TX
Fri Feb 25, 2011
If you had a foreclosure back in 2007 you then quilify to buy as of now. With a large down payment is always a good sign for my underwriter. I am a local mortgage banker here in Houston and surrounding areas. My main office is in The Woodlands which is close to you. I would like to help you get into a home with a mortgage that will fit your lifestyle. Please feel free to contact me if you wish to further discuss. Have a great day.
Web Reference:  http://www.kgcm.com
0 votes
, ,
Thu Feb 3, 2011
Short answer: Yes. Just make certian you never more than 30 days late on paying any of your reporting (i.e. credit cards, auto, student, installment loans, ect) debts. Have restablished at three 12 months or older reporting credit lines (i.e. credit cards, auto, student, installment loans, ect). Or have no othr collections (except for medical) liens or judgement against you. Do these things and you should be in great shape for a fresh start w/o being penalized for your previous foreclsoure. Although current guidelines and underwriting is typically less forgiving towards people that go through a foreclosure or bankruptcy, this ultimately has no impact on how much you'll need to put down or interest you recieve. Any LO that tells you differently is mistaken and/or possibly looking only to line their own pockets at your expense.
0 votes
Meghan Tompk…, Agent, Spring, TX
Wed Feb 2, 2011
As the previous posts, you would only need to wait 3 years to apply for a FHA loan. FHA loans are currently some of the most attractive loans for home buyers becuase of the low down payment, 3.5% of the purchase price. You will also have some closing costs to consider at closing but there are options during negotiations to help minimize your amount of cash out of pocket. Also take into consideration that the FHA limit in our area is around $271,000 for the maximum purchase price on a home.

I do know that your credit will reflect the foreclosure for 7 years. If your credit has improved and you have been able to purchase two vehicles then it sounds like it would be well worth your time to contact a mortgage broker that you trust and see if you qualify for a new home loan. A mortgage broker will also be able to provide you with some sound advise to assist you in reaching any credit goals that you may need in order to qualify.

Good luck with your home search!
0 votes
Henry J Dani…, , Conroe, TX
Wed Feb 2, 2011
Hello,
You are actually in a Great Position to buy. There are several state down payment assistance programs here in Montgomery County that you can use now. Since you have not owned a home for more than 3 years AND the foreclosure is more than 3-years ago you are considered a first time home buyer. I'd be happy to discuss these with you further. In the meantime feel free to attend out online classes or read more about the programs in the Web Reference below.

Sincerely,
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0 votes
Diane Corona, Agent, The Woodlands, TX
Wed Feb 2, 2011
I also agree with Peter. You need the foreclosure to have occurred 3 years ago on FHA. If you credit is good, you may only need to put 3.5% down for FHA. A lender will need to determine you credit score based on your credit report. If you do not have a lender in Conroe area, I can help you by referring you to a lender.
0 votes
Peter Lindqu…, , Oakdale, MN
Wed Feb 2, 2011
With regards to foreclosures, FHA will require only 3 years to have passed under present guidelines. When you meet with your lender they will determine if you have re-established good credit, which it sounds like you have had the opportunity to to with vehicles. FHA has a fairly small down payment requirement, usually as little as 3.5% of the purchase price.
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