Getting A Mortgage After Foreclosure : Piedmont Real Estate Blog

Getting A Mortgage After Foreclosure

Date: Aug. 25, 2008
Tags: Short Sale, Foreclosure, Mortgage, Credit Score, Fico, Applying For Mortgage

With more and more families locally going through foreclosures or short sales, the question is going to become, when can they get another mortgage?

Well, we finally have some guidelines from Fannie Mae, Freddie Mac, FHA and VA. Courtesy of Beth Goodwin at First County Mortgage, here's what they look like:

SHORTSALES/FORECLOSURES

Guidelines for future mortgage approvals

CONVENTIONAL (Fannie and Freddie)

When the applicant’s previous credit history includes a foreclosure-related action, a FIVE YEAR elapsed time period must have occurred. In addition, the new conventional loan will require a 10% down payment and a minimum FICO of 680. Additional re-established credit requirements will apply as well (Call for specifics). SHORTSALES have a TWO year time period with no exceptions for extenuating circumstances.

FHA

FHA loans will require a THREE YEAR time frame with re-establishment of credit. NO WAIVERS FOR EXTENUATING CIRCUMSTANCES.

The Veteran’s Administration will follow their Chapter 7 Bankruptcy guidelines that state that with a TWO YEAR time elapsement and with re-established credit, they will consider guaranteeing a VA loan. HOWEVER, if the foreclosed/short sale loan was also VA, the veteran may not have full entitlement!!!

The conventional loan programs MAY consider a shorter time frame with “extenuating” circumstances, such as death of the main wage earner but does NOT consider divorce, mishandling of debt, transfer of job or current market conditions to be “extenuating”

FOR MORE INFORMATION CONTACT:

BETH GOODWIN

Sr. Loan Officer

540-226-2402

You can also reach Beth on her e-mail at beth.goodwin@firstcountymortgage.com

Comments (2) :: Post A Comment! :: Permanent Link :: Email This Entry

RE: Getting A Mortgage After Foreclosure

Posted by: john
Date: Apr. 28, 2009

i had a foreclosure this july will be 2yrs. My foreclosure happened in the beginning of the housing market decline. It was due to the company i worked for going bankrupt. we excavated land for homes to be built upon.My bank at time chase did not want to work with us even after explaining our situation. Since then i have been working for a local government agency which is a stable job. as for down payments my wife also works for a government agency which we will get down payment assist. thank you for your help.

Permanent Link