Brivers.rive…, Home Buyer in Alpharetta, GA

Can I get an FHA Loan in Georgia even after I lost my residential property 3 years ago?

Asked by Brivers.rivera, Alpharetta, GA Fri Jun 1, 2012

I lost my residential home due to foreclosure and I have been living on an rental apartment for the last 3 years. I do have an investment rental property located outside of Atlanta and the mortgage is paid on time. My actual Fico score is around 590 - 600 but not sure if I should I wait for another year and try to apply for a mortgage loan.

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Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Mon Jun 25, 2012
For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now. Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. HUD does require that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

If you had any mortgage lates in the 12 months preceeding the short sale closing, then HUD requires that you must wait at least 36 months before you would be eligible for an FHA mortgage.

Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified you purchase, you can submit your request online at

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
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Tim Brown, Mortgage Broker Or Lender, Alpharetta, GA
Sun Jun 3, 2012

The FHA rule regarding foreclosure is you must wait 3 years from the recording of the foreclosure deed before qualifying for a new FHA loan. So depending on the precise timing of your foreclosure, you would be able to buy a home and finance it with an FHA loan.

On the other hand, your middle credit score will need to be above 620 to qualify for a new FHA loan however so I think you will want to have someone evaluate your current credit situation to help assess how quickly your score can improve to 620 or greater. I may be able to help determine you with the credit assessment if you want to buy sooner than next year. It does surprise me that your score has not moved higher if you are current on your rental property mortgage as you state.

Let me know if I can help.

Timothy Brown
LPO Manager | Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
678.468.5626 x110 | fax 678.935.1156 | cell 678.467.9959
NMLS#: 168281
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