Mortgage After A Foreclosure
FHA generally looks for three years after a foreclosure, and at least one VA program two. Fannie Mae needs seven years, or three with documented extenuating circumstances.
What you need after a foreclosure
Each item below is a requirement of FHA, Fannie Mae, or at least one other program we offer.
- On FHA, three years since the foreclosure or deed in lieu.
- On FHA, the clock starts on the deed in lieu date or the date you transferred ownership to the foreclosing lender.
- For less than three years on FHA, documented extenuating circumstances beyond your control and reestablished good credit.
- On a Fannie Mae loan, seven years from the completion date, or three with extenuating circumstances.
- On a Fannie Mae loan, rebuilt credit; thin files and nontraditional credit are not acceptable.
- If the foreclosed home had a VA loan, any debt to VA paid in full before that entitlement is restored, on at least one VA program.
Three years on FHA
Hardship can shorten it
VA options too
Fannie Mae after seven
Primary homes first
Non-QM from 12 months
How Soon After Foreclosure Can You Buy
It depends on the loan type and whether the foreclosure came from circumstances beyond your control.
On FHA, a foreclosure or deed in lieu in the three years before your case number is assigned generally rules out a new loan. The three years start on the date of the deed in lieu or the date you transferred ownership to the foreclosing lender. A foreclosure within three years sends the file to an underwriter to review by hand.
FHA can make an exception for documented extenuating circumstances beyond your control, such as a serious illness or the death of a wage earner, if you have reestablished good credit. Divorce generally does not count, and neither does being unable to sell after a job transfer. Went through a bankruptcy too? See our Chapter 7 mortgage page.
Fannie Mae needs seven years from the completion date of the foreclosure, or three with documented extenuating circumstances. Between three and seven years, you can buy a principal residence or do a limited cash-out refinance. Second homes, investment properties, and cash-out refinances wait the full seven years.
Why choose Saxton for a mortgage after foreclosure
For buyers ready to own again who want the real waiting period for each loan type.
Three Years On FHA
FHA generally looks for three years since the foreclosure or deed in lieu, counted from the date you transferred ownership or the deed in lieu date.
Hardship Can Shorten It
FHA can make an exception for documented extenuating circumstances beyond your control, such as a serious illness or death of a wage earner, once you have reestablished good credit.
VA Options Too
At least one VA program needs two years with no added requirements, or one to two years with two credit accounts reestablished with no late payments in the last 12 months and a documented extenuating circumstance.
Fannie Mae After Seven
Fannie Mae needs seven years from the completion date, or three years with documented extenuating circumstances.
Primary Homes First
On a Fannie Mae loan between three and seven years, buying a principal residence or a limited cash-out refinance is allowed. Second homes, investment properties, and cash-out refinances wait the full seven years.
Non-QM From 12 Months
At least one non-QM program allows a loan 12 months after a foreclosure on a purchase or rate-and-term refinance. Others wait two years or longer, and at least one jumbo program waits seven.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about buying a home after foreclosure.
Generally three years from the date you transferred ownership or the deed in lieu date. FHA can make an exception for documented extenuating circumstances beyond your control if you have reestablished good credit.
On a Fannie Mae loan, seven years from the completion date, or three years with documented extenuating circumstances.
At least one VA program needs two years with no added requirements, or one to two years with two credit accounts reestablished with no late payments in the last 12 months and a documented extenuating circumstance.
Not on FHA, with a narrow exception when the loan was current at the divorce and your former spouse received the home. Being unable to sell after a job transfer does not count either.
Not on a Fannie Mae loan. Between three and seven years, you can buy a principal residence or do a limited cash-out refinance, but not buy a second home or investment property.
On a Fannie Mae loan, the bankruptcy waiting period can apply if documents show the mortgage was discharged in the bankruptcy. At least one VA program starts the clock at the later of the discharge date or the title transfer date.
Yes. At least one program allows a loan 12 months after the foreclosure on a purchase or rate-and-term refinance, and others wait two years or longer.
Find out what you qualify for
Tell us when the foreclosure was completed and what you want to buy, and we will show you the programs that fit.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.