2016 foreclosure waiting period. A borrower whose previous residence or other real property was foreclosed on or has given a deed-in-lieu of foreclosure within the previous three years is generally not eligible.
Foreclosure must have been resolved for at least 3 years with no late payments since the date of resolution. Minimum credit score of 530.
Seasoning Requirements are determined by the type of loan:
Borrower should have re-established credit. FHA guidelines are clear about the need for the re-establishment of positive credit from the time of the foreclosure.
Good rental history for the last 12 months may be required. A lender may require a Verification of Rent (VOR) from a Rental Management Company or 12 months of cancelled checks showing rental history if the landlord is a private owner.
To buy a home after foreclosure you must have a minimum down payment of 3.5% if your credit score is above 580. The down payment can be the borrowers own funds or can come from a gift.
Borrowers with credit scores below 580 must make a 10% down payment.
New FHA policy requires a minimum credit of 500 to buy a home or refinance. In the old days FHA did not require a minimum score. These changes went in to effect in 2010.
To buy a home or refinance you will need a minimum FICO score of 500.
with scores above 580 require a 3.5% down payment. The funds can be a
gift from a family member and up to 6% seller concession is allowed.
If you have FICO scores below 580 new
FHA changes require a 10% down payment. The funds can be a gift from a
family member and up to 6% seller concession is allowed.
What documentation will I need?
• Personal tax returns for the past 2 years
• Current pay stubs for the past month
• Bank statements for last 2 months (all pages)
• Latest retirement statement for each active account (all pages)
• Sales contract (purchase)
• Clear copy of Driver’s License (front and back)
• Clear copy of SS card (front and back)
• Addresses and loan information of other real estate owned (if any)