My home was foreclosed on because I fell behind on my payments. Will I ever be able to buy a home again? The simple answer to this increasingly common question is yes you will be able to once again own a home. Most lenders will want you to wait a minimum of 24 months before they will consider financing you again for a mortgage. However there are other lenders, most of these are known as either subprime lenders or hard money lenders, who will finance you for a home again, but you will most likely need a large down payment.
To qualify for a conforming loan and low rates you will have to wait 4 years after your foreclosure to get a mortgage but there are lenders that will give you a mortgage very soon after foreclosure. If you have a good down payment a hard money lender will in most cases lend you money 1 day out of a foreclosure, this will require a down payment of around 30%. Sub prime lenders will sometimes let you get home 6-12 months out of a foreclosure, but a down payment of 10-20% will still be required.
Yes you can buy a home and obtain a mortgage after foreclosure. The key though when you are able to qualify for a mortgage after foreclosure is to make sure you only buy enough house that you can afford. There are too many people extending themselves when they buy their homes and stretching their dollars too thin. This is one of the top reasons for foreclosure. Make sure you only go with a fixed rate mortgage so that you are not taking any unnecessary risks and you will probably want to take on a 30 year mortgage to give yourself the most flexibility in your monthly payment.
