FHA Eligibility After Bankruptcy or Foreclosure
Major credit events affect when you can “get back into the mortgage game”. After a bankruptcy or foreclosure, you can obtain a FHA much faster than a Conventional loan and for that reason are very popular. The actual discharge date or when your name was removed from the title after a foreclosure will start the timeline of when you can “re-enter” the market.
Mandatory waiting times after a bankruptcy or foreclosure will most likely be a minimum wait of 12 months. Here is a list of waiting times after credit events. For most people, getting an FHA loan after 2 years is the quickest way to purchase a new home. Then, after 2 more years they are eligible again for a Conventional loan.
Your credit score and activity after bankruptcy or foreclosure also plays an important role in your ability to apply for a new FHA or other home loan.
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