Home Purchase After Foreclosure- By: Sonia Smith
There are many people who believe that foreclosure is the end of their home ownership. This may be true for those who do not realize that this is not the case. It may be very difficult to obtain a loan after a foreclosure, but it is not impossible. After the emotional burden of losing y our home, be assured that there is always light at the end of the tunnel. It is possible to purchase a home again after a foreclosure.
The FHA or Federal Housing Administration realized that the millions of people who lost homes through foreclosure will have to wait for seven years before they can buy a new home, it would not be possible for the housing industry to recover. There are several guidelines allowing home ownership after twenty-four months since foreclosure and with a down payment of less than 3.5 percent. The credit score needed to get a new home loan was 580, so previous homeowners should establish during the twenty-four months after losing a home. Although this process is easy, you have to make it right.
Since you lost a home before, you should look for lenders who are willing to work with people like you who want a second opportunity to own a home again. Keep in mind that anyone you try to approach for financial assistance will closely check your job, finances, references and your capability to pay your bills since the time of foreclosure. It is very important to establish your capacity to pay bills because you could not assume that people will continue to trust you after you lost your home.
Even if you will do business with a company willing to work with people who have serious credit blemishes, you will be required to make a larger down payment and may have to put as much as thirty percent of the purchase price of more. Although this is hard, for you to have a new home again, this is a great way to establish your sincerity in making it work. It may take you longer to save money, but in three years or more, you have to make sure to save to make you more appealing to lenders.
You can also purchase a new home after losing one by getting a co-signor. The person should have a better credit score than you. Nevertheless, while you may have a co-signor, you are probably going to get a considerably higher interest rate than you otherwise would. If you prefer this route, it is all the more important for you to make your payments since you are putting the co-signors credit score on the deal as well. While getting into a new home after losing one is very hard, but it is not impossible. The most important thing for you to do is to work with lenders or companies who are willing to do business with you. Moreover, you should be willing to jump through hoops because all your efforts would be worth it for a chance to own a home again.
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