Many lenders are now requiring 7 years after a foreclosure before they will give you a new loan. Of course, many is not all, so you may need to shop around. Some lenders will look at all the circumstances surrounding the foreclosure and might be willing to lend 2 to 3 years after the foreclosure. These will usually be credit unions or small local banks, not on-line lenders or large insitutional lenders. So if you are member of a credit union, start there, they may be willing to help you back into home ownership.
One exception to the above policy is VA loans. As long as the loan that went into foreclosure was NOT a VA loan (which is pretty much the case here in California as VA lending limits were quite low up until a couple years ago), if you are a veteran, you can purchase using VA financing any time after foreclosure. The only issue would be credit score. If you or your co-buyer are veterans, and you need a good lender who knows VA and actually closes these loans, please feel free to contact me for a referral. Hope this helps. Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
You would be eligible for an FHA loan or if you prefer not to pay the high mortgage insurance they are charging now , you could use our "2nd Chance" loan. All you would need is a 660 minimum mid FICO score and 20% downpayment.
If you would like more info contact me from my website below using the quick quote button.
You have passed the stated 36 months for FHA to consider your application.
The simple answer is maybe, with a laundry list of other factors coming into play that will allow you to get to the YES answer you are wishing to hear.
Some of the requirements will be agency driven, some will be "overlays" required by the particular lender you wish to work with in obtaining your home. Some of these will be Job Stability, Credit, Income, Down Payment etc. Find a great Loan Officer that can work with you to get you pre-approved for your new home. The pre-qual or pre-approval should be cost free to you. Best of Luck, Jim, HSOA, 703 615 4675
This does not mean your specific scenario will work. There are other factors obviously but you have passed the min threshold for FHA 3.5% down payment financing.
@ Shel-lee, why you'd say that only the local credit union or small community bank would do this and that 7 years is what most lenders require? The 7 years is a conventional loan requirement - FHA has always been at 3 without a problem. In fact, I'd wager a guess that the credit unions and small community banks are more likely to reject this application than a mortgage banker who specializes in FHA financing. Just my two cents - you might be able to save some deals by searching for another lender option for your clients.
Again, the 3 years on FHA is a standard guideline. No problem.
Jan, if you'd like help we'd be honored. Just contact us via our profile.
I'm sorry about your home having been foreclosed. As the others have pointed out, a mortgage professional can look at your application and credit to determine what, if anything, you may qualify for in terms of financing. They would, of course, want to know why your home went into foreclosure and what's happened since then to keep that from recurring.
I can help you with a pre-approval if you wish.
Thomas J. Stevens, Loan Officer
Flagstar Bank FSB - financing in 50 states
Prudential Sierra Nevada
It definitely depends on many factors whether you will qualify to purchase a home right now. Some people are able to purchase a new home three years after foreclosure. Credit score, job history, current debt to income ratio, and debt payment history since the foreclosure are all factors in whether you qualify. Contacting a knowledgeable mortgage broker will be your first step. I work with someone who can coach you and pre-qualify you to get into a home. If you'd like her information please contact me and I'll be glad to help.
There are many factors that are considered when approving a borrower's ability to qualify. FHA loans will consider a borrower that has had a foreclosure after 3 years. However, there are other factors that go into that approval, including and not limited to credit score, debt-to-income ratio and job history.
Check with a loan officer that specializes in FHA.
It usually takes 7 years before you are eligible to purchase another property after you've had a foreclosure. I suggest that you contact a mortgage broker to determine if you qualify as they can best answer your question.
Prudential Connecticut Realty
lending has gotten really tough even for people without a foreclosure! Besides credit score/FICO improvement, 2 years Job history in same company, and debt to asset ratio. So first hurdle is the time from disposition of the foreclosure, then gets to have you had same job with consistent earnings and are you pushing non housing debt currently? A lender can help you.
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