Can I still buy a home after defaulting on a loan?

Yes, you can and the waiting period maybe less than you think.

The waiting period depends on what the extent of the default was. For example: late payments, foreclosures, short sales, or a bankruptcy, etc.

The type of new loan you are applying for will have different guidelines.

Below are some estimated waiting periods:

For an FHA loan –

If you had a Foreclosure = 3 years

If you had a Short Sale = 2 years

If you had a Bankruptcy = 2 years

For a VA loan-

If you had a Bankruptcy = 2 years

If you had a Short Sale = 2 years

If you had a Bankruptcy (7 or 11) = 2 years

It is recommend that you speak with a lender. They will look at your situation individually. They will look at your credit score, income to debt ratios, and other factors. With this information they can determine if you are ready to once again qualify for a home loan. If you don’t qualify, they can make suggestions on what specific tasks to focus on so that you can soon be on your way to a home purchase.

 

  For guidance or questions please contact us at 760-873-4161.

“Don’t ride the Real Estate roller coaster ride alone”

 

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