“Can I buy a home if I have foreclosed on a home or have filed Bankruptcy before??”

Although your life may feel like you just lost a game of Jenga, owning a home again is not out of the question! In the past few years many americans have struggled financial which have led many people and families to foreclose on their home and/or file bankruptcy. The number #1 question I get asked after that is “will I ever be able to purchase a home again?”. The answer is Yes it is possible to purchase a home again. The key is to maintain a good credit ratings after filing bankruptcy or foreclosing on a house then just wait. Make sure to keep all of you payments and obligations on time. Contact me if you would like more information or to find out how long you need to wait to purchase a home! Here are some guidelines taken from the FHA website that give you a brief description of what you need to do to purchase a home again:

CHAPTER 13 BANKRUPTCY

FHA will consider appoving a borrower who is still paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of one year. The court trustee’s written approval will also be needed in order to proceed with the loan. The borrower will have to give a full explanation of the bankruptcy with the loan application and must also have re-established good credit, qualify financially and have good job stability.

CHAPTER 7 BANKRUPTCY

At least two years must have elapsed since the discharge date of the borrower and / or spouse’s Chapter 7 Bankruptcy, according to FHA guidelines. This is not to be confused with the bankruptcy filing date. A full explanation will be required with the loan application. In order to qualify for an FHA loan, the borrower must qualify financially, have re-established good credit, and have a stable job.

FORECLOSURE

FHA insured mortgages are generally not available to borrowers whose property was foreclosed on or given a deed-in-lieu of foreclosure within the previous three years. However, if the foreclosure of the borrower’s main residence was the result of extenuating circumstances, an exception may be granted if they have since established good credit. This does not include the inability to sell a home when transferring from one area to another.