Purchasing a home after you’ve been foreclosed upon can be difficult because lenders may be apprehensive to provide you with a loan. Still, with hard work and knowledge, you can still buy a house even with a foreclosure on your record. You’ll first have to understand the waiting periods of the different types of loans so you can best choose the loan that works for you. Each lender also may have a specific set of requirements when lending to someone that has been foreclosed upon, so it’s best to understand those as well.
Key Takeaways:
- Most underwriters want to make sure that you have had good credit before your foreclosure and after your foreclosure before allowing you to get a loan.
- The typical waiting period after a foreclosure to get a conventional loan is about seven years and requires a down payment.
- The waiting period after a foreclosure for a USDA loan is only three years and does allow for extenuating circumstances as well.
“The lender is looking for proof the circumstances that caused the foreclosure are well behind you and are not likely to be repeated.”
Read more: https://mymortgageinsider.com/ask-tim/buying-house-after-foreclosure/