How Long After Foreclosure Can You Purchase A Home? The Waiting Game
How long after foreclosure can I purchase a home? This is common question for those that have lost their houses to the banks, but are looking to buy a house once again. Unfortunately, there is no perfect answer that will ring true at all times. In some cases, you can get a new house without having to wait too long, while other times, you may have to wait for additional time. Let’s look at some of the factors that determine how long after foreclosure you can purchase a home with a mortgage from the bank.
Down payment: If you have a larger mortgage down payment, you may be able to get the loan more quickly. This means that if you have a large down payment to make on the mortgage, perhaps 40% or more, you may not have to wait as long after foreclosure to purchase a home. Large down payments reduce the bank’s risk if they grant you a mortgage loan. You may buy a new place a lot quicker this way.
Total mortgage amount: If you are looking for a small house loan, perhaps to buy a mobile on rented lot or very small starter residence, you may have more luck than you would with a larger house. This is because the risk is lessened for the bank. The banks look at their risk when they try to determine how long after foreclosure you have to wait to purchase a home with help from them.
Current credit score: What is your score these days? How long after foreclosure you have to wait to purchase a new home will depend in part on your current credit score. Your score will take a hit, but how have you rebounded? Have you made immediate repairs to your score? Are you keeping current on all bills?
What’s different? How long after foreclosure can I purchase a home? What would keep you from defaulting on your mortgage this time? Are you making more money, perhaps from a second job? Make positive changes and you won’t have as much time to wait. Are you now single? Were you recently married to someone with decent credit? Do you have a savings account these days? What’s the balance? These are all things to consider when you try to figure out how long after foreclosure you can purchase a home.
When you are trying to determine how long after foreclosure you have to wait to purchase a home, it really helps to look at these considerations. If you are making improvements, you may be able to buy a house with the help from the bank. If not, you will most likely need to put in some more time to make your homeownership dreams come true. Keep at it and you will be able to get another mortgage. While there really is no perfect answer to how long after foreclosure you can purchase a home.
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