Getting Back on the Housing Horse After a Foreclosure

Realtor Hedy GoldmanGetting back into the real estate market after having been burned by a foreclosure isn’t easy, financially or emotionally. Realtor Hedy Goldman at SDGLN offers some tips:

Just because you’ve gone through foreclosure, bankruptcy or have a poor credit history does not mean that you cannot buy a home. People in these situations buy homes everyday. You just need to be aware and knowledgeable of the additional hoops you will have to jump through to qualify.

Among them:

Homebuyers with foreclosures and bankruptcies on their records need to show a consistent history of pristine credit since the time of their foreclosure. Additional FHA requirements include: On-time bill payment on all credit accounts since the foreclosure/bankruptcy; a 640 credit score (responsible credit use is absolutely essential to gain this score 3 years out of foreclosure; a verified down payment (3.5% or higher, depending on the borrower); upfront and ongoing mortgage insurance (which protects the lender from debts in case the buyer defaults); significantly lower debt-to-income ratios (ensures the buyer has ample discretionary income to make payments long-term.

Read more at the link above.