A foreclosure will affect your credit for at least 3 years from the date of the foreclosure. You will not be able to get a mortgage loan for at least 3 years from the date of the foreclosure. At that point you can get a FHA loan. You will need to have about 3 lines of credit that have been paid on time for the last year. You will need to have 3.5% down payment. That can be a gift from family. But FHA has loan limits of $271,050 (as of 2011 in Metro Detroit). So you can’t get a FHA loan on a single family home for more than that.
If you want to buy a bigger home after you have had a foreclosure and you need a higher loan amount then you will have to wait 5 years to buy a home. A conventional mortgage through a bank requires 5 years from the date of the foreclosure.
So if you had a foreclosure start re-building your credit now. If you have no credit, and can’t get a credit card start with a secured credit card. Use it for groceries or gas. Pay it off each month. Starting now will help you plan for your future.
When I say that a foreclosure will affect your credit for at least 3 years I am only talking about your ability to get a mortgage and buy a Canton home. That foreclosure will stay on your credit report for 7 years.
If you are interested in buying or selling in Canton, please give me a call or email me.
313-310-9855
Real Estate Videos:
Canton foreclosures - home buying tips
Comments(2)