A lot of good families got swept up in the housing market bubble build up during the years of 2000 to 2006. Everyone was trying to keep up with the Jones. Unfortunately a lot of these same good families were victims of the housing market bubble busting. Good families were put in unfortunate positions where they had to foreclose on their homes. We decided to provide information for the families who were forced to foreclose on their dream home during and after the real estate bubble burst. Most families are curious about when they can buy after a foreclosure. Three of the biggest determining factors are the type of new loan you qualify for, has your credit been reestablished, and the reason why you unfortunately had to foreclose.
After you’ve reestablished your credit here are the lengths of time you will have to wait before you can acquire a new mortgage.
Conventional loans require the longest length of time to wait before applying for a new mortgage. Conventional loans have a waiting period of seven years from completion. Conventional loans also come with stricter debt to income ratios and stricter credit qualifications.
VA loans require you to be a veteran or currently serving in the military; so, not everyone can qualify for a VA loan. The wait time for the VA loan after a foreclosure is two years. This is appropriate because our soldiers are deserving of everything for their sacrifices.
FHA loans typically requires at least a three year wait after a foreclosure.
In general banks can require a larger down payment after the foreclosure; so, keep that in mind.
Home ownership is not for everyone. Some people understandably find it’s easier to rent instead of buying. It’s much less responsibility. No maintenance of the home is required if you rent. No home owners associations dues nor head ache to deal with from HOAs. Renting gives more mobility and flexibility because in this job market, families may be asked or forced to relocate. Home ownership can be a financial burden. So, determine if home ownership is right for you after you’ve waited the required amount of time after your foreclosure. Check back for more real estate articles. Feel free to leave a comment below. Feel free to post on your social media page and to subscribe to this website.