Mortgage After Foreclosure

How long after a foreclosure can I get a mortgage?

It may not be as difficult as you think to get a mortgage after foreclosure in New Jersey. The waiting period varies depending on the type of loan. For FHA loans it is typically 3 years, conventional loans through Fannie Mae of Freddie Mac are 5 years, and VA loans can be achieved after 2 years. This will be public record, so any title company can pull up this information and give to your mortgage broker or lender.

However, there are some exceptions that can get your qualified without having to wait the entire 3 years.

In this article we will provide helpful information on:

Getting a mortgage shortly after a foreclosure FHA, Conventional, and VA Loans after foreclosure What you need to do to get approved after foreclosure Short sale vs. Foreclosure Rebuilding your credit Ways to get a mortgage shortly after foreclosure.

Using a private / hard money loan

If for some reason you want to buy a home way before that 3 year anniversary, and have at least 35-40% to put down on a home, I would suggest a private money or hard money loan. This is a short term loan of 5 years, however, it would give your foreclosure time to season, and you would be able to refinance into a better loan.

Prove Extenuating Circumstances

If you can prove that the foreclosure was a result of extenuating circumstance then you might be able to get approved for a mortgage without having to wait the full 3 years. Examples of these unfortunate circumstances include:

Serious Illness / Medical bills Significant income loss due to loss of a job Natural disasters FHA Loan requirements following foreclosure

FHA loans are backed by the government and typically require a 20% down payment. A typical minimum credit score is 620. Therefore, to get approved for an FHA loan you will need to do the following:

Build your credit score up to a minimum of 620 Save enough money for a 20% down payment Wait three years from the date your foreclosed property was sold Conventional Loans After a Foreclosure

Conventional loans that are backed by Fannie Mae or Freddie Mac typically have a longer waiting period of around 7 years. There are also exceptions to this time period by proving you or your family experienced extenuating circumstances that caused your foreclosure. With both Fannie Mae and Freddie Mac you will need to:

Wait 5 years after the date the foreclosed property was sold Rebuild your credit score to at least 620 provide documentation of the official date your foreclosure was sold

VA Loans after a foreclosure

VA loans can be a great option for for those who have earned the right to apply by serving in the military. These loans can be achieved with a credit score of 620 and above and in most cases with no down payment. It is possible for someone to be approved for a VA loan following a foreclosure and with less of a waiting period of two years. For those who qualify, a VA loan can be a great option because of their flexible requirements.