Applying for a Mortgage after a foreclosure

[Anonymous]

Hi I wanted to ask how long after a foreclosure can someone apply for a new mortgage, any recommendations as to what banks and or credit Union that are favorable to work with?

all 3 scored are in the high 600's  no collections, 1 late payment 1year since foreclosure 

[homeloanexpert]

Hello,

The waiting period for home loans vary depending on loan program. Here is a quick run down

1.) Portfolio or NonQM - 1 day after foreclosure. 100% credit score driven. This program has higher rates and fees

2.) VA - 2 years

3.) FHA or USDA RDL - 3 years

4.) Conventional - 5-7 years depending if you file BK7 and added the property.

Hope this helps. Feel free to PM me for futher questions.

[JVille]

Even 1 late pmt is a huge and especially if you are only 1 year out of BK. Sorry this tells an underwriter you are already having issues.

[Anonymous]

Thank you all for replying to my question.

[VALoanMaster]

Hi Roxxy,

The time line required depends on the loan program, the situation & they type of loan you had on the home that was foreclosed on.

1) Portfolio loans will allow 1 day out of a foreclosure but will require at least 20% down & higher rates and fees.

2) FHA & USDA require 3 years unless your foreclosure was the result of extenuating circumstances & then the wait can be as little as 1 year. The caveat here is what type of mortgage you had on the home that was foreclosed on. If it was FHA, VA or USDA you will be listed in CAIVRS & that can effect how long you have to wait. If you included the mortgage in a BK, your 3 year wait starts from when the bank foreclosed, not the bk discharge date.

3) VA - requires a 2 year wait unless you you qualify under extenuating circumstances & then it's dropped to 1 year. If you included the mortgage in a bankruptcy, you wait is 2 years from the bk discharge date or 1 year with extenuating circumstances.

4) Fannie Mae & Freddie Mac are both at 7 years from the foreclosure date unless you have extenuating circumstances & then it drops to 3 yrs & requires 10% down payment. Fannie Mae requires a 4 yr wait when the mortgage is included in a BK & the wait starts from the discharge date of the BK.

[Anonymous]

Thank you so Much!