Much depends on how long ago you experienced a foreclosure, short sale or bankruptcy filing. The type of mortgage you had before, along with the type of mortgage you are seeking today, has a bearing on the timelines.

Another critical factor is your track record post-foreclosure. If you’ve obtained new credit and handled it responsibly, you have a pretty good chance of owning a Columbus home again.

If you’re still in the process of recovering from a past event, keep the following tips in mind!

Chapter 13 Bankruptcy: You could be eligible for a new FHA mortgage in one to two years after the completion of your bankruptcy.  FHA loans only require a 3.5% down payment, but your lender might look for more, depending on your current credit score and work history.

FHA foreclosure or short sale: FHA is more forgiving than most types of mortgages. Even if you had a foreclosure or short sale with them in the past, they’ll consider you again after a three-year waiting period. The biggest challenge for repeat home buyers is rebuilding a credit score to meet today’s underwriting requirements.  Establishing new lines of credit and handling your payments like clockwork, while keeping your outstanding balances low, will help you accomplish this.

Freddie Mac/Fannie Mae: These 900-lb gorillas of the mortgage market are tougher on repeat home buyers. If they lost money on you before through a foreclosure or short sale, they will keep you in the “penalty box” for 7 years.  These entities are dominant in the current mortgage market, and they have the memory of an elephant. But with good credit, and at least a 5% down payment and stable work history, you can be back in the game after enough time has passed.

As your Exclusive Buyer’s Broker in the Columbus area, I can refer you to reputable mortgage lenders who can look at your situation in detail, and give you advice on your mortgage eligibility.

Owning your own home in Central Ohio is far preferable to long-term renting, and by making your plans now, you’ll be ready to take advantage of new opportunities in the future! Whenever you have questions about buying a home in Columbus, OH or the surrounding area, feel welcome to contact me! I’ll be here to help you. In the meantime, download our free e-book , packed with home-buying pointers to get you started!

Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

www.BuyersHome.com
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