If you sold a house or duplex via a short sale, or even lost a property to foreclosure, you may already be able to buy again.
Even after the worst of credit circumstances, like bankruptcy and foreclosure, lenders do offer forgiveness and a chance to start again.
For example, if you’ve filed for bankruptcy, you may be eligible for an FHA insured loan in as little as two years following its discharge. If you sold a property via a short sale or foreclosure, you may qualify to buy another in as little as three years.
Of course, FHA mortgages are limited to owner occupants, and come with mortgage insurance premiums. So what about conventional loans?
If you’re had a Chapter 7 or 11 bankruptcy, you may be able to finance a duplex purchase four years from the date of discharge. Those who filed Chapter 13, on the other hand, may be able to qualify for a loan just two years after the bankruptcy discharge.
The availability of conventional loans for short sale survivors varies. If you had a short sale two years ago, you may qualify with a 20 percent down payment. If you only have 10 percent saved to put down, your short sale had to be at least four years ago. And if your short sale was one of the early ones, taking place seven or more years ago, you may be able to put as little as 5 percent down for a conventional mortgage.
And finally, if you lost a home to foreclosure seven years ago you may now be able to qualify for a conventional mortgage.
Of course, there are other mitigating factors in your ability to qualify for a loan. Be sure to speak with a qualified loan officer so you can address your specific situation.