cancel
Showing results for 
Search instead for 
Did you mean: 

Buying again after foreclosure

tag
Anonymous
Not applicable

Buying again after foreclosure

My husband and I due to renew our lease in Spring of 2015 at the home we are renting. We were really hoping to buy again. It has been more than 3 years since our foreclosure. My credit is in the 700's, with my highest score being a 780. The foreclosure was NOT on my credit. HIs credit is less than steller. More in the 550-low 6's- we are not sure how to improve it. I have made him joint on things I have purchased (vehicle, a credit card that only reports to one CRA) and made him AU on the rest of my TL's. We are self-employed (EDITED TO ADD: He shows income, I do not) and have been since shortly after our foreclosure happened, again, more than 3 years ago. Are we crazy to think that we would be approved for a mortgage? We have more than enough in savings for a downpayment and can provide proof of income. We are tired of renting, have been on our feet financially for quite some time and need to just move on from that nightmare from years ago. Or should we rent one more year?

Message 1 of 4
3 REPLIES 3
TimeToRecover
Established Contributor

Re: Buying again after foreclosure

i can't comment on your current ability but I can tell you that you can buy after foreclosure.  I had a foreclosure due to job loss back in june of 2010.  and I just closed on my newly built home 2 week ago.    

 

I did have to go FHA due to the time since the foreclosure but I plan to refinance into conventional (asuuming it is financially smart to do so) once the time limit for foreclosure is up.  the time for FHA is less then cnventional.

 

for the question on if you would qualify you need to post the answers from the sticky and let some of the experts chime in.


Starting Score: 570 ish
Current Score:EX (701) EQ (711) TU (705)
Goal Score: 750
In My Wallet: GE Care Credit (8K) BestBuy (6K) BofA Cash Rewards Signature Visa (7K) Cap One Quicksilver (10.5K) Chase Freedom (4K) Lowes (6K) VS Angel Card (2.4K), Macys (4K)
Message 2 of 4
Anonymous
Not applicable

Re: Buying again after foreclosure

I love stories of hope! Thank you for your response. Still figuring out the boards, going to read the sticky! Thank you, again.

Message 3 of 4
StartingOver10
Moderator Emerita

Re: Buying again after foreclosure

The time to recover from a foreclosure is 3 years from the date the deed transferred from you back to the bank if you get an FHA mortgage.

For a conventional mortgage with at least 10% down, the time period is 4 to 7 years.

 

Note:  lenders will use the lowest mid score of each of your credit scores - in this case your husband's score. He really needs to be above 620 if possible for decent rates. Having said that FHA will go into the 500s. The tradeoff is a much higher down payment.

 

Check your tax returns. You will need to be able to show enough income (after your business deductions) to support the mortgage. That is the biggest issue with self employed, they don't have enough income to support the mortgage reporting on their tax return. You will need to show the two most recent years (they will be averaged).

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.