06/30/2024

Several programs can help you buy a house after experiencing a foreclosure, offering hope for those looking to rebuild their homeownership dreams.

The Federal Housing Administration (FHA) provides loans with a shorter waiting period of just three years after foreclosure. 

These loans often have more lenient credit requirements and lower down payment options, making them accessible to many buyers.

The Department of Veterans Affairs (VA) offers VA loans with a two-year waiting period for eligible veterans and service members. 

These loans typically feature competitive interest rates and no down payment requirements.

For rural homebuyers, the U.S. Department of Agriculture (USDA) loan program has a three-year waiting period after foreclosure. USDA loans offer zero down payment options and competitive interest rates for eligible properties.

Some lenders offer non-qualifying mortgage (non-QM) loans that may have no waiting period after foreclosure. However, these loans often come with higher interest rates and fees, so carefully consider the terms before applying.

To explore these options, contact HUD-approved housing counselors at 1-800-569-4287 or visit HUD.gov. For VA loans, reach out to the VA at 1-800-827-1000 or visit VA.gov. USDA loan information is available at 1-800-414-1226 or USDA.gov.

Remember, recovering from foreclosure takes time and effort, but it's not impossible. Focus on rebuilding your credit, saving for a down payment, and improving your financial habits. With patience and determination, you can achieve homeownership again and create a stable financial future for yourself and your family.