How Soon After a Short Sale or Foreclosure Can I Buy a Home?

This is a question we get all the time.  Millions of people have lost their homes to Foreclosures or Short Sales over the past 10 years.  Many of these people were just experience a difficult time and are now in a much better place and ready to consider homeownership once again. 

The waiting period before you can purchase varies depending on the program:

Conventional Loan: 4-7 years
FHA Loans: 3 years
USDA Loans: 3 years
VA Loans: 2 years

There are circumstances where each of these timeframes can be reduced, so if you think you are ready, it is a good idea to meet with a lender to get some advice.

There are also some things you can do to make sure you are ready as soon as possible.

  • Work on repairing your credit.  Lenders want to see a good credit score, so check yours out and work on repairing it as much as possible.  You can pull your credit report for free from keep in mind that the lender will be seeing a slightly different report. 
  • Make payments on time.  Lenders will look to see if you are on track with keeping up with your payments.  Making sure you are not late and are making all payments will help you out!
  • Have a steady job.  Lenders will verify your employment. They want to see steady employment so people who change jobs often or work several part time jobs instead of a full time job, may have a more difficult time. 

Having a foreclosure or short sale will not keep you from ever owning a home just takes a little time and work! 

Are you recovering from a short sale or foreclousre and think you are ready to buy?  Give us a call and let one of our experienced agent point you in the right direction.