Qualifying For Home Loan After Multiple Foreclosures

Home buyers 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 a FHA Loan.  Waiting period after a deed in lieu of foreclosure and short sale is three years after the recorded date of the deed in lieu of foreclosure and three years from the date of the short sale which is reflected on the HUD Settlement Statement.  There is a mandatory waiting period of seven years from the recorded date of the foreclosure to qualify for a conventional loan.  There is a four year waiting period after a deed in lieu of foreclosure and short sale to qualify for a conventional loan.  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 home loan after multiple foreclosures?  Home buyers can qualify for home loan after multiple foreclosures and we will cover some case scenarios in the following paragraphs on 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 and others purchased multiple homes, mortgaged them, and rented them.  Police officers, teachers, fire fighters, 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 and 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 than many property owners refinanced them every year or every other year, 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 and there were many mortgage loan programs where no income verification was required and many real estate investors can purchase homes with no money down while many 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.

Qualifying For FHA Home Loan After Multiple Foreclosures

Home buyers can qualify for FHA Home Loan After Multiple Foreclosures.  They can qualify for a FHA Loan three years after the latest recorded foreclosure.  By this is the date the last property they owned was foreclosed on and 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

If you had multiple foreclosures, you can qualify for a home loan after multiple foreclosures seven years after your latest recorded foreclosure where the deed of the property was transferred out of your name into the name of the mortgage lender 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.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

Comments are closed.