FHA mortgage rules for bankruptcy and foreclosure

How soon can I buy a home after a Foreclosure or a bankruptcy? 

What is the Whether you are losing your Metro Detroit home in foreclosure or you have a recent bankruptcy now is the time to get your credit back on track.  Years ago you could get a no money down loan one day after foreclosure.  Boy times have changed.  Here are the banks rules that you need to know before you can get a new mortgage in the future.

Foreclosure time limits for getting a new mortgage      

Now if you have had a foreclosure in your past and you want to get a Michigan mortgagethere are time limits.  Time limits on how long you have to be out of the foreclosure.  If you have had a foreclosure the time starts from the day the house is sold or changes to the banks possession.  Not from when your Wayne County or Oakland County home went 90 days late.  It is when the bank or lender finally sells the home or your redemption period is up.  That is when you no longer have any right to the the foreclosed house.

So for a FHA mortgage it is three years and for a conventional mortgage it is five years.  So if your Michigan home’s redemption period is up in two months you can’t get a FHA mortgagefor 3 years from the end of the redemption period.  Or Five years for a conventional mortgage or conforming mortgage.

 

Bankruptcy time limits for getting a new mortgage      

If you have recently gone through a Chapter 7 or Chapter 11 bankruptcy the time starts from the time the bankruptcy has discharged.  The time the judge has signed the discharge. Not from when you started it..   So if you want to get a FHA mortgage the soonest you can buy metro Detroit real estate is two years from the date of the bankruptcy discharge.  For a conforming loan or conventional mortgage it is five years from the date of the bankruptcy discharge.

So if you losing your Metro Detroit home because of foreclosure don’t despair you can start today on the road to home ownership.  Two years and even five years flies buy take it from a 50 year old guy.  I once had bad credit when I was a young man.  If I could get my credit back on track so can you.

My quote of the day is:“You wake up in the morning and lo! Your purse is magically filled with twenty-four hours of the unmanufactured tissue of the universe of your life. It is yours. It is the most precious of your possessions. No one can take it from you. It is unstealable. And no one receives either more or less than you receive.”
Arnold Bennett

 

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