Monday, May 2, 2016 - Article by: MEL SMITH--LENDER OF THE MONTH - Meadowbrook Financial Mortgage Bankers -
If you have recently faced foreclosure, you may be speculating as to when you'll be able to purchase a new home again.There's a good chance you'll want to get back on track and purchase a new home once you do so.If you are looking to get another mortgage, you'll be subject to various "foreclosure seasoning requirements," which range from as little as one day to seven years, depending on the type of loan and the circumstances.
A foreclosure will linger on your credit report for seven years, which can be a hindrance both on your credit score and your ability to acquire a subsequent mortgage.Nevertheless, some banks and bad credit lenders will permit borrowers to purchase a home within just a couple years of foreclosure, contingent to your credit score and recent credit history.
It's essential to reconstruct your credit as soon as possible after foreclosure to increase your chances of being approved for a mortgage post-foreclosure.That means doing everything in your power to recover and preserve a healthy credit score, including paying all other bills on time and paying down high balances if you've got them.
You can get an FHA just one year after foreclosure if you experienced phases of financial struggle due to extenuating circumstances. This is assuming you have kept credit clean since the negative action. For VA loans there is a waiting period of two years. Conventional loans require a seven-year waiting period for re-establishing credit behind completion of the foreclosure action. Keep in mind if you can get a mortgage fairly soon after foreclosure, the terms likely will not be as favorable as a consequence.
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