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How soon can you qualify for a mortgage after foreclosure?

February 10th, 2017 by usdaadmin

What are the foreclosure waiting periods for mortgage qualifying?

With USDA, FHA, VA, or Conventional loans, foreclosure waiting periods are different and in today’s video I will explain how soon you can qualify for a mortgage after foreclosure and compare the programs side by side. 

Remember, if you need help or a have question that is what we are here for, so just call or email to discuss your scenario because we are known for returning calls, replying to emails, and responding to your messages. Now, wouldn’t it be nice if everyone did that!

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.

How soon can you qualify for a mortgage after foreclosure?

Tampa FL USDA Loan Approved Lender

In many cases a foreclosure does not occur due to financial mismanagement, but instead due to third party events and circumstances that are outside of the homeowner’s control.

Now, with that being said, once a foreclosure has been completed, waiting periods will apply with how quickly you can be able to qualify for a mortgage.

Presently, here are the published foreclosure guidelines for VA, USDA, FHA, & Conventional:

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

As noted, we have been able to successfully process USDA loan exceptions after a foreclosure depending on the factors involved.

However, remember the any exceptions would be looked at on a case by case scenario.

Now, while it may be possible to get exceptions on the other programs we mentioned today, please make sure the lender you are working with has a history of getting the exceptions approved.

Additionally, when you have had a previous foreclosure on a government loan such as VA, USDA, or FHA it is important for your lender to check the CAIVRS database, because you may have an outstanding claim that could stop your loan application from proceeding.

Tampa FL USDA Loan Approved Lender

CAIVRS is a Federal government database of delinquent Federal debtors that allows federal agencies to reduce the risk to federal loan and loan guarantee programs.  If there is a claim reporting from a previous foreclosure, be prepared to wait for that to be cleared prior to qualifying for another government loan.

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