Tuesday, July 3, 2012

When Can You Buy After Short-Sale or Foreclosure?

The below information is courtesy of Mike Meena, president of Augusta Financial:

We have all heard that interest rates are low and it is a great time to purchase a property or refinance your existing home.  I also know that we all know of people that either short sold their home or let their home go in foreclosure, and I get the question every day of when they can purchase again. 

Below are the normal timelines after one of the above events:

Conventional – The current rule allows a person to purchase a house with 20% down 2 years after a short sale and 4 years after a foreclosure.  If you want conventional financing with less than 20% down, then you would need to wait 7 years.

FHA – The current rule for a person buying a home with 3.5% down would be 3 years for a short sale or 3 years from the foreclosure date. 

VA  If you have VA eligibility then you could purchase after 2 years with no money down. 

There are exceptions to all of the rules, but these are good guidelines for you to follow.  Every deal is unique and of course you would need good credit and enough income to qualify for what you are purchasing. 

Please let me know if you have any questions on purchasing, refinancing, investing or just real estate in general. 

Have a great 4th and I will look forward to hearing from you soon. 


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