I have many clients that buy homes after a bankruptcy, foreclosure or short sale. It just takes some time, but not as long as you may think.

After a short sale, these days a homebuyer can get a conventional mortgage after two years, with 20% down. With only 10% down, it may take four years. And with a minimum down payment, less than 10%, it can take seven years.

But for FHA loans, that many of my clients qualify for, they can get mortgage financing as little as 3 years after a foreclosure or short sale, with as little as 3.5% down. And it can help, if you can explain to a lender the extenuating circumstances that caused the problem.

Qualify for a V.A. loan? You only have to wait two years after a foreclosure or short sale, and there is no down payment.

If getting a mortgage after a foreclosure or short sale is what you want to do, start working on your credit and getting your credit score as high as possible. After a bankruptcy, we offer clients and former clients a free "7 Steps To A 720 Score" educational course that guarantees that they can get your credit score to 720 in as little as 12-24 months. Just contact the office to get signed up. This is a limited time offer.

Also, if you do a short sale instead of allowing your home to foreclose, be sure it shows that way on your credit. While they hold it against you for the same period of time, some lenders do not consider a short sale to be as bad as a foreclosure.

J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization