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FHA Waive waiting period

I heard that the FHA may waive it's 3 year foreclosure waiting period. If this is the case, will I be able to purchase a home after foreclosure immediately or will I have to wait for a certain period of time?

by hogenj_526_138 from Los Angeles, California. Sep 12th 2012 Reply


James Barath (JamesBarath)
#1 ranked lender in Indiana - 328 contributions

FHA already allows for a waiting period for less than 2 years but not less than 12 months when there are extenuating circumstances such as death or serious illness to a wage earner.

Sep 12th 2012
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Peter Botros (PeterBotros)
#75 ranked lender in New York - 895 contributions

The waiting period can be shortened for reason already posted in other answers. Best of Luck!

Sep 12th 2012
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Bert Carpenter (BertCarpenter)
#40 ranked lender in Arizona - 1,731 contributions

Unless you have extremely extenuating circumstances (death of a co-borrower) or a bankruptcy/foreclosure cause by death or serious medical costs, you won't see a waiver for less than the standard 36 months. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Sep 12th 2012
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Ken Burrows (mortgagesforamerica)
#22 ranked lender in Nevada - 516 contributions

The only way FHA will waive that is if it was a major reason that caused the foreclosure. Such as a death in the family, major illness, etc... Job loss or other issues wouldn't count. I have gotten a few through with 20% down through Fannie Mae after 2 years.

Sep 12th 2012
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Larry Gray (lgray_312_247)
#9 ranked lender in California - 273 contributions

Death in the family or major illness has always been a way to get a 2 yr bk requirement or 3 yr. foreclosure requirement shortened.I do subscribe to one of the most significant and thorough mortgage professionals blogs. I would be happy to keep you informedshould they shorten that period for others via recent talk. Email me your email contact at lgray@clrloans or via www.larrygraymortgage.com

Sep 12th 2012
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#1 ranked lender in

no, you'll have to wait at least 12 months yet the key will be the extenuating circumstances which usually is a one time event beyond your control.

Sep 12th 2012
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#0 ranked lender in

I agree with Bert. Unless a death has occurred with a spouse or co-borrower, it aint going to happen for you. You've already lost one home, no lenders are going to be willing to stick their neck out for you and take a risk of another loss within a 24-36 month period.

Sep 12th 2012
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You all might be incorrect. There is a good possibility that within 75 days, so early December 2012, FHA will waive many who have recently been through a significant derrogatory credit event...... but the conditions of this change in wavier are not yet known. We have no idea what they will ask for only that there is a good chance they will again insure those were credit worthy buyers had it not been for this market. It could be that the person who went through a SS, DIL Foreclosure or Bankruptcy has to have a higher than normal/average credit score following the derrogatory. Or it could be that banks will charge a little higher interest rate or ask for a higher percent down. From what I have read, the FHA intends to guarantee the loans for certain "credit worthy buyers" and extend forgivenes to many that have been through a recent event. Again, what this means yet....nobody knows. Lets only hope that this is true. It will be another method of stablizing the housing market and getting buyers back into homes that probably would never have had to Short Sell, do a DIL or a Foreclosure had it NOT BEEN for this partcular market and history in time. And it could also create more jobs for those who work in the housing industry such as roofers, electricicians, drywallers, etc..... Rebecca Thompson, Real Estate Broker

Sep 13th 2012
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