Getting a Mortgage After Foreclosure
With more and more families locally going through foreclosures or short sales, the question is going to become, when can they get another mortgage?
Well, we finally have some guidelines from Fannie Mae, Freddie Mac, FHA and VA. Courtesy of Beth Goodwin at First County Mortgage, here's what they look like:
SHORTSALES/FORECLOSURES
Guidelines for future mortgage approvals
CONVENTIONAL (Fannie and Freddie)
When the applicant’s previous credit history includes a foreclosure-related action, a FIVE YEAR elapsed time period must have occurred. In addition, the new conventional loan will require a 10% down payment and a minimum FICO of 680. Additional re-established credit requirements will apply as well (Call for specifics). SHORTSALES have a TWO year time period with no exceptions for extenuating circumstances.
FHA
FHA loans will require a THREE YEAR time frame with re-establishment of credit. NO WAIVERS FOR EXTENUATING CIRCUMSTANCES.
VA
The Veteran’s Administration will follow their Chapter 7 Bankruptcy guidelines that state that with a TWO YEAR time elapsement and with re-established credit, they will consider guaranteeing a VA loan. HOWEVER, if the foreclosed/short sale loan was also VA, the veteran may not have full entitlement!!!
The conventional loan programs MAY consider a shorter time frame with “extenuating” circumstances, such as death of the main wage earner but does NOT consider divorce, mishandling of debt, transfer of job or current market conditions to be “extenuating”
FOR MORE INFORMATION CONTACT:
BETH GOODWIN
Sr. Loan Officer
540-226-2402
You can also reach Beth on her e-mail at beth.goodwin@firstcountymortgage.com
And, as always, you can reach me at 540-270-2742, via e-mail at Julie@JulieEmery.com or follow me on Twitter.