When Can I Buy?

Lee M

LoanSafe Member
Aug 22, 2011

My home was foreclosed in Florida, title transferred back to the bank on August 5, 2014. I've been working on my credit (low 700s), low outstanding debt and have probably 10 - 15% for a down payment on a new home. It seems that my only option would be an FHA loan at the three year mark (August 2017), as there were no loss of income or hardship.

Two questions: I'm interested in a new construction home which would probably take 6-8 months to build. Would FHA allow for me to sign a contract now and work with the financing part after August? Are there any other financing options available in which I wouldn't have to wait until August?

Thanks again!

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
San Diego, California
Hi Lee,
You found the right place to get correct answers to your scenario and direction.

I did want to Segway into something that we have available now that doesn't have any seasoning periods on foreclosure, BK...etc. Our product (in house, not brokered) will allow financing with 20% down, 660 FICO and 6 months of reserves.

It does however sound like you have time due to the property just breaking ground.

Here's my 2 cents on the FHA side of things. You will be unable to get fully approved in underwriting until you meet the seasoning period on the foreclosure. What I would do personally as a loan officer is package up your file and make sure there are no other road blocks or hurdles that you need to jump through outside of awaiting for the seasoning period to elapse. This will help ensure your loan will be approved but of course there is no guarantee.

One of the other issues with starting the loan early is that FHA loans require a case number be assigned to the property you are seeking to purchase. This case number that is assigned cannot be assigned to the property until you are 3 years beyond the foreclosure. If it is assigned earlier than the 3 years it's more of a process to get the case number removed than just waiting.

Please let me know if you'd like any help and/or want me review your documentation - I would be happy to do that for you. Here is my contact information: [email protected] or 619-379-8999.
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