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I had an FHA loan on my home about 10 years ago, had to declare bankruptcy, and the home was foreclosed on. Is it possible to get another FHA loan, or once you have had one defaulted on, you have burned that bridge? I know with a VA loan I think you have to pay back the amount they paid out, but not sure how an FHA loan works.
I had an FHA loan on my home about 10 years ago, had to declare bankruptcy, and the home was foreclosed on. Is it possible to get another FHA loan, or once you have had one defaulted on, you have burned that bridge? I know with a VA loan I think you have to pay back the amount they paid out, but not sure how an FHA loan works.
You should be able to obtain another FHA secured loan after three or four years post foreclosure. The issue,i s the interest rate you will be charged. You won't get anywhere near the going rate on interest charges. Expect to pay a few percentage points more than whatever is the going rate at the time you obtain such a FHA loan.
I suggest find a local loan officer who specializes in fha mortgages.
There's more to just the date of foreclosure on an FHA that went south. HUD paid a claim, so your name and social is in their credit alert system. Ask a loan officer to run your info thru CAiVRS. If you have an active claim, you will be frozen out of any government financing for 3 years from the date the claim was paid. If it was 10 years ago, you should be fine........but if 4 years ago, questionable - some of the banks got so far behind, it took them 2 years just to file the claim.
You should be able to obtain another FHA secured loan after three or four years post foreclosure. The issue,i s the interest rate you will be charged. You won't get anywhere near the going rate on interest charges. Expect to pay a few percentage points more than whatever is the going rate at the time you obtain such a FHA loan.
I suggest find a local loan officer who specializes in fha mortgages.
Not true. You either qualify or you don't. Rate will be the same whether there was a foreclosure or not.
So rates for low risk borrowers and high risk borrowers are the same....ok
The OP may be back to 780 FICO for all we know as it has been 10 years. And yes, for FHA you basically get the same deal whether you are a 660 FICO or a 760 FICO. After 10 years the bankruptcy and the foreclosure won't even show on the credit any longer. But since it was a gov't loan, a borrower may still run into some hurdles as it is tracked.
Conventional is different. Conventional has 'price hits' for those under 740 and the 'price hit' grows for every 20 points a borrower is below 740. This is only after the meltdown though. Used to be the 660 borrower got the same deal as the 760 for convetional too.
I'm not going to debate about it. We don't know his score and we can't assume. Lenders can and have given different rates for fha loans between people with 660 and 760
I'm not going to debate about it. We don't know his score and we can't assume. Lenders can and have given different rates for fha loans between people with 660 and 760
Just checked my rate sheet (I am a mortgage loan officer). An 800 FICO vs. a 660 FICO is a cost difference of .375 for FHA. That means the 660 borrower would get the same rate as the 800 borrower, but the 660 borrower would pay an additional .375% in closing costs ($750 on a $200k loan).
I don't agree with it in the least, but that's how the gov't typically thinks..."things should be equal for all".
I like to point such things out as I am sure the general population is under the assumption that a borrower with a bankruptcy, foreclosure and/or poor credit would have to pay more for their mortgage as they are a higher risk and when you get down to it, they really don't for FHA (at least not much). The good borrowers get stuck paying the same mortgage insurance rates as the 'bad' ones.
It is a defintely more "fair" conventional mortgages (i.e. perfect credit gets what can be a considerably better deal than mediocre credit), but only after the mortgage meltdown happened. Used to be on conventional that the 660 borrower got the same deal as the 800 borrower. You either qualified or you didn't. It was a bit harder to qualify at the 660, but again not all that much more.
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