Many people in the last few years have went through a foreclosure or a short sale and are now looking to buy again after a foreclosure in 2013.
Having went through a foreclosure, you know how important home ownership is and how it feels to lose a home. You also know that when you went through a foreclosure, your credit score took a big hit and you have probably worked hard since your foreclosure to repair your credit and get it to a spot where you are thinking you might be able to buy again.
Even if you have good credit, you still will potentially have the waiting period problem – or how long you have to wait to get a mortgage loan. Depending on a number of things, you may be able to get a loan right away or you may need to wait a number of years before you will qualify.
After Foreclosure: Waiting Seven Years
If you are interested in getting a Fannie Mae loan, the standard waiting period after a foreclosure is seven years. That said – seven years is not a for sure thing that you can get a loan because of your credit scores. If you have bad credit scores but have waited 7 years, you still won’t get approved.
Additionally, if you don’t have a good job and income status, it will also improve your chances of getting approved. Good credit scores, a 7 year waiting period and a good job and your chances of getting approved for a mortgage after foreclosure increase significantly.
After Foreclosure: Waiting Three Years
In the event that your foreclosure was a result of extenuating circumstances, then it is possible that the waiting period for a Fannie Mae loan is only 3 years and not 7. What are “extenuating circumstances”?
Extenuating circumstances are non-recurring events that are beyond your control that resulted in a sudden, significant and prolonged reduction in income, or a catastrophic increase in your financial obligations.
If you had extenuating circumstances and it resulted in a foreclosure, you will need supporting documenting the extenuating circumstances.
After Foreclosure: No Waiting Period
Some lenders will not require a waiting period after foreclosure. It depends on loan programs and whether or not you can document that you are a good risk, but it is possible for you to get a mortgage after foreclosure with no waiting period. If you have a good credit score, a good job and have a good down payment, expect that if you shop around among a few different lenders, you will be able to find a lender who can help you get a mortgage fairly quickly after a foreclosure.
Get started right here – submit your information below and we will match you up with a lender who specializes in helping people just like you get approved for a mortgage after foreclosure, bankruptcy or other financial hardships.