How long does it take to qualify for a mortgage after foreclosure?

Asked by Evemc22, Bronx, NY Wed Oct 10, 2012

I was the cosigner of a VA loan but the home went into foreclosure after divorce because the ex-husband wouldnt assist with the property. How long will this affect me for? i also qualify for a VA loan and my credit score right now is at 680

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aftervince19…, , Greenville, NC
Sun May 18, 2014
Don't let a foreclosure stop you from buying a new home. See Comstock if you have a buyer in need. They have a flexible credit loan. This program assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.

http://www.thinkcomstock.com/buy-after-foreclosure
0 votes
Patti Kane, Home Buyer, Boulder, CO
Sun May 19, 2013
I had a short sale last year and my Realtor recommend http://www.cfs-mortgage.com/flex for a home loan. I am very happy to be able to purchase again.
CFS Mortgage assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.
0 votes
Wesley Jacks…, Agent, New York, NY
Fri Oct 19, 2012
It takes 7 years to qualify for a mortgage after going through a foreclosure. It stays on your credit report.
0 votes
, ,
Wed Oct 10, 2012
Hi Evemc22,

VA guidelines require 2 years from the foreclosure to be eligible again.

Here's where things can get a little tricky for some lenders that don't understand the 2nd tier or bonus entitlement available on VA.

As long as you entitlement wasn't used on the mortgage that you co-signed on this shouldn't be a problem but if you did use your entitlement, it will show up on your VA Certificate Of Entitlement and that would reduce the amount of entitlement you have available.

For example: Let's say you used $36,000 of your entitlement on the previous mortgage. The amount of entitlement available to you will be 25% X the VA county loan limit which in most cases is $417,000 so that would give you a total entitlement of $104,250. Now subtract what was used, $104,250 - $36,000 = $68,250. This means you would have enough entitlement left to allow you to buy a home for $273,000 with no money down.

Like I said though, if you didn't use your entitlement on the previous mortgage, it doesn't matter.

Please feel free to contact me for more information or help. You can also find more info on my VA website by clicking the link below.

John Burke
Senior Mortgage Banker
Peoples Bank & Trust
(877)228-9069
0 votes
Anna M Brocco, Agent, Williston Park, NY
Wed Oct 10, 2012
For a personalized answer visit with any licensed loan officer; generally VA requires about two years; otherwise anywhere from two to seven years.
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