Many California home owners fell victim to foreclosure, short sale or bankruptcy since the Real Estate Crash of 2007.Recovering from a foreclosure may not be as difficult as you think.In some cases, there are even incentives for home owners experiencing past hardships to become home owners again.
Buy a Home After Foreclosure
Having a foreclosure, short sale or bankruptcy may affect your credit scores at the time of the event, but time heals most credit hiccups as long as you have a plan and understand how to re-establish your credit. Qualifying for a mortgage loan to purchase a home after foreclosure depends on what type of loan you are trying to qualify for.
FHA and VA are the best options for qualified buyers to re-enter the market in 3 years or less.
A minimum 640 credit score is usually required to qualify for Conventional and FHA mortgages, VA requires a minimum 620 credit score to buy a home after foreclosure.
Qualify for First Time Buyer Assistance
The definition of a first time home buyer recognized by many buyer assistance programs, including the State of California CalHFA programs, is that the applicant cannot have owned a home as a primary residence in the past 3 years.
Since the waiting period to buy after foreclosure using a FHA loan is 3 years, home buyers re-entering the market will be considered first time buyers!
California First Time Buyer Assistance Program
CalHFA CHDAP – California Housing Finance Agency – California HomebuyersDownpayment Assistance Program.
Eligible buyers receive assistance equal to 3% of the purchase price, can be used as down payment or closing cost assistance. Eligible buyers must not exceed program income limits or purchase price.
Foreclosure Victims Qualify for First Time Buyer Assistance was originally posted on Find My Way Home.