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After a foreclosure, how soon can you qualify for a mortgage?

November 15th, 2019 by Sean Stephens

Do foreclosure waiting periods depend on the mortgage type?

After a foreclosure, how soon can you qualify for a mortgage in Florida, Alabama, Tennessee, or Texas?

In working with so many of our customers over the years, we have found that foreclosures often occur due to circumstances outside of the homeowner’s control, rather than financial mismanagement.

With that being said, once a foreclosure has been finalized, a waiting period is required before another mortgage can be provided.

However, USDA, FHA, VA, or Conventional loan waiting periods are different. That’s why in today’s video, I’ll compare the programs side by side and keep you in the know about this important topic.

After a foreclosure, how soon can you qualify for a mortgage?

What are foreclosure waiting periods?

A waiting period determines how quickly you can qualify for a mortgage after an event such as a foreclosure, bankruptcy, or short sale and can vary depending on the mortgage type you are attempting to qualify for.

Presently, the published foreclosure guidelines for VA, USDA, FHA, & Conventional waiting periods are:
What are USDA Foreclosure Waiting Periods in Florida, Alabama, Tennessee, or Texas

  • VA Loans: 2 years after a foreclosure
  • USDA Loans: 3 years after foreclosure (Exceptions can be possible!!!)
  • FHA Loans: 3 years after a foreclosure
  • Conventional (Fannie Mae and Freddie Mac): 7 years after a foreclosure

Are USDA Foreclosure exceptions possible?

As noted above, USDA loan exceptions are possible after foreclosure, but depend on the on the factors involved and will be on a case by case basis.

However, due to our USDA expertise and experience, the “Metroplex” team has successfully approved USDA foreclosure exceptions over the years.

What needs to be checked?

Do Texas, Alabama, Tennessee, or Florida foreclosure waiting periods depend on the mortgage type

When you have had a previous foreclosure on a government loan such as VA, USDA, or FHA, it’s vital for your lender to check the CAIVRS database.

The CAIVRS database documents liens, defaults and other outstanding debt owed to federal agencies.

This is crucial because an outstanding claim could stop your loan application from proceeding.  If there is a claim reporting a previous foreclosure, be prepared to wait for clearance prior to qualifying for another government loan.

USDA, VA, FHA, and Conventional Foreclosure Guidelines

Remember, the required waiting period after a foreclosure will vary and depends on the mortgage type with any exceptions being possible on a case by case basis.

If you have recently been denied for a mortgage because of a previous foreclosure, please take advantage of our free Second Opinion Service (SOS) which is great for both new pre-qualifications and existing transactions.

Lastly, you can always find more FREE USDA resources on our downloads page. It’s valuable information, including our USDA Blueprint for Success!

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