(888) 634-4260

(888) 634-4260

FHA Loan After Foreclosure


Before you start the FHA loan process, be prepared to provide some information to your loan officer. Have it ready now to save time later.

  • Address to your place of residence (past two years)
  • Copy of the trust deed transfer or mortgage foreclosure document to prove that it has been 3 years after your foreclosure or short sale. (county recorders office has copies of this) This is VITAL to getting your loan approved and making sure you won’t have any issues down the line.
  • LOE (Letter of explanation) regarding the foreclosure or short sale.  Email us for a sample letter.
  • Cannot enter into a purchase contract until after the 3 year anniversary or HUD will not insure the loan.  This is a common mistake and will most definitely delay your closing!
  • Re-established credit.  At least one open credit line with a low balance preferred.
  • Social Security numbers (SS Cards)
  • Names and location of your employers (past two years)
  • Gross monthly salary at your current job(s)
  • Pertinent information for all checking and savings accounts
  • Pertinent information for all open loans
  • Complete information for other real estate you own
  • Current check stubs and your W-2 forms (past two years)
  • Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals

GUIDELINES – Read these closely to make sure you are eligible for a FHA loan after foreclosure:

Minimum Credit score for a FHA loan after foreclosure is: 580

Minimum required downpayment 3.5% plus closing costs (Prepaid items such as taxes and insurance)

Minimum waiting time since foreclosure or short sale: 3 YEARS

No open collections over $5,000

THIS ONE IS IMPORTANT – Make sure that if you had a 2nd mortgage, it is not presently reporting late payments or showing a balance past due.  This must be dealt with prior to getting a loan pre-approval.  Email us to discuss ways to fix this problem.

If you are presently working with a loan officer ask them bluntly if they have ever successfully funded a FHA loan after someone had a foreclosure.  If not, don’t let them practice on YOU.  This is what we do on a regular basis and we can help you avoid pitfalls and delayed closings or last minute loan denials. FHA loans after foreclosure is our focus and specialty. You will not pay a higher rate or fees for using one of our preferred mortgage bankers.  Email us at

Call an experienced after foreclosure mortgage banker now: 888-634-4260




Do You Qualify? Click Here to Find Out!