I've been asked many times, "Will I ever be able to purchase a home again?" There is life after foreclosure! Did you know that you could be eligible for FHA financing after 3 years. Let's talk!
Foreclosures must be greater than 3 years old to be eligible for FHA financing as long as it was due to extenuating circumstances. Some examples are loss of primary wage earner, serious illness, job transfer, etc and the borrower has shown to established good credit.
Below is a list of the Waiting Period to Buy After Foreclosure:
Buying After a Foreclosure
The waiting period is 5 years up to 7 years.
Buying After a Foreclosure With Extenuating Circumstances
The waiting period is 3 years up to 7 years.
Buying After After a Deed-in-Lieu of Foreclosure
The waiting period is 4 years up to 7 years.
Buying After a Deed-in-Lieu of Foreclosure With Extenuating Circumstances
The waiting period is 2 years up to 7 years.
Buying After a Short Sale
The waiting period is 2 years. However, if a seller does not have a 60-day late pay, that seller may immediately buy another home. Consider staying current on your payments while the home is on the market as a short sale.
If you have no extenuating circumstances, you will need to wait four years from the date of completion. This waiting period is the date your deed-in-lieu of foreclosure was recorded at the county clerks office. In addition, some loans require 10% down and a minimum credit score (FICO) which varies from 580 to 620. The home you purchase must be your principal place of residence, not an investment property or vacation home.
