How to Buy a Santee California Home for Sale after Foreclosure

 In Home Buying Tips

SANTEE, CA – Are you thinking about buying a Santee California Home for Sale after going through a recent foreclosure? If so, you’ve come to the right place.

In this article I will breakdown what you can expect when it comes to buying a home in Santee, CA after going through foreclosure.

How Long Do You Have To Wait?

Depending on your lender you may have to wait up to four years to buy another home after foreclosure and if your home loan was backed by either Freddie Mac or Fannie Mae you will have to wait seven years after your foreclosure has been completed until you can buy a Santee California Home for Sale.

Keep in mind that even though you may be able to buy another home within three years after a foreclosure it could still remain on your credit score for up to 7 years but the foreclosure will be just one negative item on your credit report and you can lessen it’s negative impact by paying your bills on time and practicing sound financial management.

Rebuild Your Credit Score

Although foreclosure isn’t something that anyone wants to go through the reality is that it happens and one of the consequences of foreclosure is that it can take 100 points or more off your credit report.

To apply for another mortgage loan you will need to get your credit back in shape by doing the following:

  • Pay your bills on time.
  • Save money each month for a down payment.
  • Use sound financial wisdom and do everything you can to keep your Debt-To-Income (DTI) low.
  • Establish liquid assets and save as much money as possible for a down payment on a Santee Home for Sale.

What Lender Should You Choose?

Before applying for a conventional mortgage loan to buy a home in Santee it’s important to be aware of the possibility that you may be asked to pay a larger down payment and confirm to stricter debt-to-income requirements.

Not every lender has the same requirement when it comes to applying for a mortgage loan after foreclosure, for example: if you are a veteran or the spouse of someone who is a veteran or active member of the military you may be able to apply for a mortgage loan and buy a home within two years of your foreclosure.

The FHA makes it possible for buyers to get mortgage loans within one year after they’ve gone through foreclosure but you must be able to prove that you suffered a severe economic crisis which reduced your income by 20 percent for six months.

If you are unable to prove that you suffered an economic catastrophe due to a medical emergency or job loss then you will have to wait up to three years to apply for another FHA mortgage loan.

As a rebound home buyer it’s also important to note that you will be required to come up with a down payment of at least 20% or 3.5 percent if you decide to choose a HUD or FHA loan.

Did You Have An FHA or VA Loan? If so, Do This…

VA loans and FHA loans are very common with home buyers nationwide but the harsh reality is that if you had either of these mortgage loans when you went through foreclosure you will not be able to get another FHA or Government baked loan for buying a Santee home until you’ve repaid the shortfall or unpaid debt that was government secured.

To learn if your name is listed in the CAIRS database you will need to consult with a lender for this because this information is not accessible to the public.

Buy a Santee California Home for Sale

To learn more about buying a home after a foreclosure contact Farrah Thomas with Farrah Thomas Real Estate at (800) 659-8469 x 85 or CLICK HERE.


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