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FHA LOAN AFTER FORECLOSURE
I would fully qualify for FHA except for recent foreclosure. I have $15k. can you get me into a home?
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1 Reply
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Yes, it’s possible to qualify for an FHA loan after you have gone through foreclosure, but you should be aware of the waiting periods and the requirements that must be fulfilled:
FHA Loan Guidelines after Foreclosure
Waiting period:
In most cases, the Federal Housing Administration states that there is a three-year wait time before you can reapply for an FHA loan. However, this wait time heavily relies on certain singular events and the lender’s policies.
Credit score:
If you make a down payment of 3.5%, you must meet the minimum credit score requirement, which is usually 580.
Down payment:
Yes, with $15,000, you can buy a house worth $428,000 since this can meet the 3.5 percent down payment requirement for an FHA loan. Furthermore, your income can also be used to extend the down payment amount through other assistance programs.
Sound Profile:
The lenders will require a paper trail containing evidence of when the borrower started making on-time payments, the duration of their job, and the debt-to-income ratio deciding if they’re a suitable borrower.
What to do next
Find a Lender:
Locate an FHA loan specialist, ideally a mortgage lender, assess your current standing, and ask them about the loan eligibility criteria.
Work on your profile:
Concentrate on perfecting your credit and not apply for more debt; focus on lowering your existing debt.
Gather Documentation:
Collect the supporting documents that describe your income, credit history, and assets.
Even though a recent foreclosure is a problem, it can still be within resolving means for an FHA loan if you satisfy the waiting period criteria and the other requirements set. Talking to a competent lender would assist you through the information and the procedures.