Hal's Mortgage Blog

If it hasn’t happened to you, surely a friend or family member has had the unpleasant experience of foreclosure. One of the most common questions I receive is, “When can I buy another house after foreclosure?”

Yes, it is possible to buy another home after foreclosure, maybe sooner than you think. But it takes patience and planning.

FHA guidelines require a waiting period of three years from the date of the foreclosure before you are eligible to buy again. This will give you time to rebuild your credit. Remember, the underwriter will want to see that you have reestablished good credit.

Many of my clients have found their credit dropped as much as 200 points after foreclosure but by maintaining timely payments on their consumer debt over the three year waiting period are now back in the low 700s.

Those who lost their home to foreclosure in 2009 will be eligible in 2012 subject to the normal rules of qualification.

The rule for bankruptcy is that two years must have passed since discharge of Chapter 7 or 1 year on a Chapter 13 (requires permission from the bankruptcy trustee).

What about VA loans? They are a little more liberal than FHA, requiring only two years since foreclosure before becoming eligible again. The debt must be satisfied however, as it will affect your entitlement. It is best to check your current Certificate of Eligibility (CEO). Any VA lender can assist you with that.

If you would like a copy of this information please click the link below for downloadable PDF

FHA/VA Derogatory Credit Chart

Call me with your questions. I’d love to be of service.