Home Loan After Multiple Foreclosures Mortgage Guidelines

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This BLOG On Home Loan After Multiple Foreclosures Mortgage Guidelines Was PUBLISHED On June 30th, 2020

What are the guidelines on the mortgage

Homebuyers can qualify for a home loan after foreclosure.

  • There are waiting periods after foreclosure that are mandatory for every mortgage loan program
  • For example, there is a mandatory waiting period of three years from the recorded date of the foreclosure to qualify for an FHA Loan
  • Waiting period after a deed in lieu of foreclosure and a short sale is three years after the recorded date of the deed in lieu of foreclosure to qualify for FHA and USDA Loans
  • Three years from the date of the short sale which is reflected on the HUD Settlement Statement to qualify for FHA and USDA Loans

There is a two-year waiting period to qualify for VA Home Loans after the following per VA Guidelines:

  • Chapter 7 Bankruptcy discharged date
  • Recorded date of foreclosure and/or deed in lieu of foreclosure
  • Date of the short sale

There is a mandatory waiting period of seven years from the recorded date of the foreclosure to qualify for conventional loans:

  • There is a four year waiting period after a deed in lieu of foreclosure and short sale to qualify for conforming loans
  • Most folks have one foreclosure, short sale, deed in lieu of foreclosure
  • But how about those who owned multiple properties and are now trying to qualify for a home loan after multiple foreclosures? 

Homebuyers can qualify for a home loan after multiple foreclosures. We will cover some case scenarios in the following paragraphs in this article.

Lending Guidelines In Qualifying For Home Loan After Multiple Foreclosures

Prior to the 2008 Real Estate Meltdown, many folks owned more than one property.

  • Many hard-working Americans who had no experience in real estate started to invest in real estate and many had multiple homes
  • They purchased homes, rehabbed them, and flipped them for handsome profits
  • Others purchased multiple homes, mortgaged them, and rented them
  • Police officers, teachers, firefighters, mortgage brokers, real estate agents, plumbers, electricians, cashiers, small business owners, blue-collar workers, white-collar workers, doctors, lawyers, dentists, and military personnel all became real estate investors and they all made money
  • Many folks in these professions made so much money in real estate that they ended up quitting their main jobs and became professional real estate investors
  • They thought that the real estate boom will last forever
  • For almost ten years, real estate prices kept on going up year after year after year with no sign of turning back
  • Real estate values appreciated so much every year and many property owners refinanced them every year or every other year
  • They did a cash-out refinance and used the cash proceeds from the cash-out refinance to purchase more homes
  • Many property owners owned more than a dozen properties
  • Real estate financing was extremely easy
  • There were many mortgage loan programs where no income verification was required
  • Many real estate investors can purchase homes with no money down
  • Others purchase homes not only with no money down but got back cash at closing
  • Then 2008 rolls around and the real estate market crashed like never in the history of the United States

In this article, we will discuss and cover Home Loan After Multiple Foreclosures Mortgage Guidelines.

Qualifying For FHA Home Loan After Multiple Foreclosures

How to qualify for an FHA home loan after having taken over the property several times

Homebuyers can qualify for FHA Home Loan After Multiple Foreclosures.

  • They can qualify for an FHA Loan three years after the latest recorded foreclosure
  • By this is the date the last property they owned was foreclosed on
  • The deed of the home was transferred out of their name into the name of the lender
  • Or the name of the new home buyer or the date of the Sheriff’s Sale

Re-established credit and no late payments after the latest foreclosure is required.

Qualifying For Conventional Home Loan After Multiple Foreclosures

Borrowers with multiple foreclosures can qualify for a home loan after multiple foreclosures seven years after their latest recorded foreclosure:

  • This is where the deed of the property was transferred out of homeowners name into the name of the mortgage lender or new home buyer
  • Or to the name of the new home buyer or the date of the Sheriff’s Sale
  • Waiting period after foreclosure to qualify for a conventional loan is seven years from the recorded date of the foreclosure
  • There is a four year waiting period after a short sale to qualify for a conventional loan

There is a four year waiting period after a short sale to qualify for a conventional loan.

No Waiting Period After Housing Event And Bankruptcy With Non-QM Loans

Which means no waiting period after a housing incident and bankruptcy with non-QM loans

Homebuyers who did not meet the mandatory waiting period after a housing event and/or bankruptcy can now qualify for non-QM loans offered by Gustan Cho Associates.

  • A housing event is a foreclosure, deed in lieu of foreclosure, short sale
  • There is no waiting period after housing event and/or bankruptcy discharged date with non-qm loans
  • 10% to 20% down payment is required
  • There is no private mortgage insurance required on all non-QM loans
  • There is no loan limit caps on non-QM loans
  • Mortgage rates on non-QM loans depend on borrowers credit scores and the amount of down payment they can put down
  • The amount of down payment on non-QM loans is dependent on borrowers credit scores

Qualifying For A Home Loan After Multiple Foreclosures With A Lender With No Overlays

Gustan Cho Associates are experts on government and conventional loans. We are also experts on non-QM and alternative financing. GCA Mortgage Group has a national five-star reputation due to his no overlays on government and conventional loans and is one of the top non-QM lenders in the country. The team at Gustan Cho Associates are available 7 days a week, evenings, weekends, and holidays. Free free to call or text us at GCA Mortgage Group at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com.

2 Comments
  1. Bruce Williams says

    If a person had a foreclosure back in 2010, another one in 2014, and a third foreclosure in January 2015, this person can qualify for a FHA loan in January 2018. This is because HUD requirements is a 3 year waiting period after the recorded date of foreclosure to qualify for FHA loans. The prior foreclosures do not matter.

    1. Gustan Cho, NMLS 873293 says

      That is correct. The waiting period goes by the most recent recorded foreclosure on cases involving multiple foreclosures.

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