The peak of foreclosure activity in California was 2008 and 2009. That means there are a lot of former homeowners that have now passed the required waiting period to get a FHA home loan after having a former foreclosure.
Besides VA loans for military members, FHA loans provide the shortest waiting period after a foreclosure to be able to apply for a new home loan, three years. Conventional loans require a seven year wait after foreclosure to qualify.
The key date to look for is the date the deed to the foreclosed home transferred out of your name. Give us an email (email@example.com) or call (858-922-7899) if you would like us to look up this date for you. You need to wait three years from the date the deed transferred out of your name from the foreclosure before you can apply for a FHA home loan in California.
Additionally, you will want to make sure you have no derogatory items on your credit after the foreclosure. You want to have perfect credit after the foreclosure. No late payments on anything and no collections or charge-offs. The foreclosure is seen as a very serious credit event and the FHA underwriter likes to see the borrower is financially stable and managing their finances well after the foreclosure. It can also help you case to have some saving in the bank.
So those are the FHA loan requirements for getting a FHA loan after a prior foreclosure. If you have any further questions about FHA loans and want to apply for a loan, feel free to email us at firstname.lastname@example.org or call at 858-922-7899.
Sr. Loan Officer