Four years ago we walked away from our home because it was going to be foreclosed. It's been sold. Can we buy another house?

Asked by Linda, Hamilton, OH Thu Aug 16, 2012

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James Gordon…, Agent, Hamilton, OH
Fri Aug 17, 2012
Linda the time line for buying a home after a forclosure starts from when the forclosure was final not when you left the home. Do you know when the sheriff sale date and deed transfer was or if it happened yet? If you want to contact me I have a good lender on the west side that check credit for you and give you a definite answer.
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Thank you. People have been living in the house for about a year or more. We went to file bankruptcy but couldn't come up with all the money so never went through with it. Our credit rating is probably really bad, but we are looking for a small gift of money and would like to see if we can find a fixer upper for 10,000 or so.
Flag Fri Aug 17, 2012
William Pola…, Mortgage Broker Or Lender, Suwanee, GA
Thu Aug 16, 2012
Hi Linda,

After 3 years, you can buy a house using an FHA loan. I believe you have to wait 5 years for conventional lending. Your rate will not be affected. You'll just need to write a letter of explanation to the lender as to what happened. Make sure that you have at least 3.5% down payment and scores are above 620. Most lenders are now at 640 minimum but there are still some left with lower score requirements. Make sure also that you have at least 3 lines of credit reporting to the bureau and they are at least a year old each. They must be active within the last 12 months. Debt to Income ratios should stay below 45% of gross or adjusted gross income (if self employed).
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Tina Lam, Agent, San Jose, CA
Thu Aug 16, 2012
Of course. There's nothing to prevent you from buying another house. Just put down an all cash offer like 25% of the buyers today.
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