So your ready to buy again but you’ve had a foreclosure and you ask yourself these questions.
How long do I have to wait? How do I qualify? What steps to I need to take to be eligible? Can I be a first time buyer again?
What a difference a couple of years can make. You probably qualify to purchase a home NOW! Plus, you have options. You can take advantage of low down payments with ridiculously low interest rates plus even qualify as a first time buyer.
Interested. Read on.
Your Ready to Buy Again
You’ve gone through hell of losing your home to foreclosure. Moving out of the home, your home, was a hard thing to do. Dealing with the bank and all the notices, mail, phone calls. It was not a pleasant experience. Now, some years have passed, you’re renting or living with someone. You’ve been able to restart, rebuild, save a little. The desire to be a homeowner is still there, never was lost. Only thing holding you back is, “How long do I have to wait? How can I qualify?”
How Do You Qualify to Buy Again?
Qualifying to buy after a foreclosure is no different than qualifying a FHA mortgage under any other circumstances:
- You must have steady employment in the same line of work for 2 years
- You must be able to show the probability of continued employment
- A minimum 640 FICO score is required
- FHA requires a minimum 3.5% down payment
- 36 months must have passed since the foreclosure date
How do I Know When I’m Eligible?
The 3 year waiting period starts the exact date the deed of trust is transferred from your name to the bank’s name. This happens right around the end of the foreclosure process.
This information is easy to find. It’s public record and can be found by going to the county recorder office or your county may have an online website with that information, you can search there. Or even easier, contact us and we can look it up in our systems and tell you right over the phone.
First Time Home Buyer Eligibility
Here’s where the story gets juicy. This is the definition of a 1st Time Buyer:
- A person has not owned a home in the past 3 years.
Ironically, this is also the waiting period to buy again after foreclosure. Now, you may be eligible for down payment and closing cost assistance the State of California or other incentives. There are restrictions that we can let you know for specific properties and income and purchase price limits.