Is it really possible to get a new home(mortgage loan) with a recent foreclosure?

My house was foreclosed on this year. I want to know realistically how long do i have to wait before I can purchase another home.Is it really possible to get a new home(mortgage loan) with a recent foreclosure?
The Fannie Mae Guideline is that the foreclosure most be at least 4 years ago before you can qualify for their products, FHA says 2 years.





Of more concern, however, is your credit score which will determine your access to the best rates and fees. You will need a middle score of 620 to access Fannie Mae. Although FHA is not score driven is is still a factor they consider so the higher your score the better choices you will have.Is it really possible to get a new home(mortgage loan) with a recent foreclosure?
You can probably apply for one if you have enough income coming in..but the interest rate will by high! You could wait 7 years until it is dropped, and then re apply. You can rent until then?!
You can buy a home 1 day out of foreclosure if you really wanted to but is it worth it is the question. With the subprime lenders out there nowadays you can find a mortgage broker that will get you into a home but with a sizable down payment. How is your credit score now?





Remember your rate will be higher than most but yes; you can still get into a home. Do not bother going to any banks, go directly to a mortgage broker. Also, make sure you weigh the benefits of paying that higher rate vs renting. Also, why did you let the home go into foreclosure? Do you think it is wise to buy again now? Most mortgage brokers will tell you the opposite but I look out for my clients. Sometimes you are better off NOT buying and just waiting for now.
There is more info needed here. If you had PMI, Private Mortgage Insurance, then you are in better shape. That means that your lender didn't take as big of a hit and PMI paid them. And this shows on your credit report. I'm not sure how PMI feels about you right now but that is another issue.





One of the best things you can do is increase your credit rating. Do that ASAP. One way would be (if you have any charge cards) make all the required payments, more if possible. Try to pay down what you owe. Also, don't stop charging, just pay off whatever you charged right away. Paying cash doesn't show that you pay your bills. You have to have a record. If you don't have a charge card, get one, even if the interest rate is way high. Just don't charge anything that you can't pay back right away. Example: you would buy a pair of shoes, charge the cost on a charge card, then pay it off immediately. If you have the cash to buy something, don't pay cash, charge it and pay it off immediately.





Next, if you owe anybody (including med. bills), call them and make arrangements for a payment plan. Did you know that if you owe, you can call the payee and either make arrangements for a payment plan or tell them that you will be a little late in paying? Then tell them when to expect the payment. Just make sure you keep in touch. You would be surprised how willing most of them are to work with you.





Another suggestion for better credit is getting a card that you put money on and then use it until the balance runs out. Talk to a bank or credit card company about that.





As far as a new mortgage, I wouldn't say that you can't get another one for 7 yrs. (that is how long the foreclosure stays on your credit report), you just need the right real estate agent or mortgage broker who can work with you on creative financing. I have done this with an agent. You might have to pay a higher interest rate at first but after a few years, you can refinance to get a better rate.





This is not the end of the world. There are many people in your position and so creditors are getting used to it. They just want to know that you are working with them and not trying to skip.





Hope this helps, good luck.
I would think you would need to wait at least 2-3 years. Until then, you REALLY need to work on re-building your credit and establishing a STRONG rental history. Even at that, your rate is going to be high.





Also, when you go to apply, be fully prepared to make a written statement explaining the circumstances that led to your foreclosure. In some cases, if it was medical or job related a lender may be a little more forgiving.
Realistically, about seven years.





In the eyes of a lender a foreclosure is about as bad as it gets. It shows that for what ever reason you were unable to keep your agreement to pay them money. They also make the assumption that people don't change.





With a recent foreclosure your credit probably looks awful. They are going to consider you a very high risk. Even if you can get financing they are going to expect a sizable down payment, probably more than 25%. They are then going to give you a very stiff interest rate since they are almost expecting you to default again.





You would be better off renting, getting hold of your credit reports from all three agencies, and then talking with an accountant as to the very best way to rebuild your credit and save a good down payment.





You need to rebuild your credit and prove to future lenders that you are a better person now than you were when you were involved in the foreclosure.





Now I'm not trying to be mean about you here. I am trying to show you how lenders think. You are just a number to them. They don't care anything about you other than your past credit history and other risk factors. They don't care if you have a very good reason or excuse for your foreclosure. It's all about statistics and risk assessment.





Good luck.
If you have enough income (something changed ?) then you can get one BUT your % rate will be high, high, high .