If you fell victim to foreclosure during the housing crisis or following the downturn in the economy, you are no doubt curious about when will be the best time for you to get back on the track to home ownership. The first indicator will be your comfort level with your finances, when your savings are right and when your credit score is strong enough, but there are also some standard timeframes to keep in mind that can be helpful when trying to time your recovery and re-entry to the housing market.

Some of the more common numbers of years for financial reset are:

• 2 years – Veterans can qualify for a VA loan in as little as two years after foreclosure, depending upon their circumstances
• 3 years – Some borrowers who had a Federal Housing Administration (FHA)-insured loan may qualify after just three years. It is sometimes less time for those with certain circumstances, including a well-documented illness or condition, but additional occupancy restrictions may apply and there is a maximum 90% LTV
• 7 years – This is the norm for most people, and is the standard amount of time before Fannie Mae or Freddie Mac make borrowers wait before they will back loans to those that suffered foreclosure.
• 10 years – If you have had to declare bankruptcy in the past, generally this is the amount of time that the foreclosure remains on your credit report

If you suffered any of these difficulties before, consider how your financial life and habits have changed since then, and be prepared to show how you have built up to a better financial life if you go to get a mortgage in Atlanta from either of our offices. We will be happy to work with you and find the right borrowing plan for your lifestyle!