WHEN CAN I BUY AGAIN? So there are a LOT of people who went through a foreclosure, short sale or other negative event the last few years. They are watching prices go up and are wondering when they can get back in and buy a home again. Unfortunately, there is no one simple answer. I’ll try to describe some of the basic waiting periods below, but there are a LOT of variables, so contact me or your favorite lender to research your situation. Also keep in mind that different lenders may have different rules. I know of one lender where you can get a loan RIGHT after many of these events, but rates and fees are higher than normal, and it’s an adjustable rate loan, not fixed. Below I’ll look at the two main types of loans, conventional (20% down) and FHA (3.5% down). Ch 7 bankruptcy: Conv – 4 years from discharge, FHA 2 years from discharge. Ch 13 bankruptcy: Conv/FHA – 2 years from discharge, 4 years from dismissal. Foreclosure: Conv – 7 years, FHA – 3 years. Short sale/Deed-in-lieu – 2 years, FHA - 3 years (although possible to do right away if no late payments and you had to do short sale due to job relocation). Loan modification: Conv 2 years, FHA – 3 years. There is also a fairly new FHA program called “Back to Work” where you may be able to get an FHA loan in as short as one year after a bankruptcy, foreclosure, short sale or deed-in-lieu if you had job loss or at least 20% loss of income. Lots of fine print and further qualifications on this one.
Posted on: Thu, 08 May 2014 17:54:53 +0000
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