« Return to Blogs

How to get an FHA Loan with an FHA Lender in WA after a Foreclosure

How to get an FHA Loan with an FHA Lender in Washington State after a Foreclosure

Michael Patterson
Blog Author / FHA Lender in WA State
Call me at 206-423-4000

There is a lot confusion out there regarding how long it actually takes after having a Short Sale, Bankruptcy or Foreclosure until a person can apply for a new FHA Loan with an FHA Lender.

Want to make a bet on the right answers? Any takers? (I know the guidelines and even I would be hesitant to take that bet with things changing so rapidly these days.)

Depending on the circumstances surrounding the event, there are possibilities for shorter lengths of time. As a direct FHA Lender in Washington State, I'm often asked by borrowers and real estate agents this exact question. While this post is a little technical in nature, it will shed some light on just what the mortgage lenders and investors want to see.

 

 


Ideally, speaking with a lender about your specific situation is probably best, but here's the basics listed below. Call me if you need more info! Everyone's situation is different.

 
 

How to Get an FHA Loan with an FHA Lender in WA after a Foreclosure

 

A borrower whose previous principal residence or other real property was foreclosed or has given a deed-in-lieu of foreclosure within the previous three years is generally not eligible for a new FHA-insured mortgage with an FHA Lender.

 

However, if the foreclosure was the result of documented extenuating circumstances that were beyond the control of the borrower and the borrower has re-established good credit since the foreclosure, the FHA lender may grant an exception to the three-year requirement.

 

Extenuating circumstances include serious illness or death of a wage earner, but do not include the inability to sell the house because of a job transfer or relocation to another area.

Many times, foreclosures also involve Bankruptcy. The guidelines are different than for the Foreclosures. If this is you, I recommend these posts below:

 

 

How to get an FHA Loan with an FHA Lender in WA after a Bankruptcy

A Chapter 7 Bankruptcy (liquidation) does not automatically disqualify a borrower from obtaining an FHA mortgage...

Read more: How to get an FHA Loan with an FHA Lender in WA after a Bankruptcy

 

 

How to get an FHA Loan with an FHA Lender in WA after a Short Sale

When a previously owned property was sold for less than what was owed (aka short sale), borrowers are considered eligible for a FHA insured mortgage IF...

Read more: How to Get an FHA Loan with an FHA Lender in WA After a Short Sale

 

 

I hope this information has been helpful. If it's raised more questions than answers, WELCOME TO MY WORLD AS AN FHA LENDER! Everyone's circumstances are slightly different so it's very important to review your situation with a qualified mortgage professional.


In addition to being an FHA lender, I am also well versed on VA, USDA and Conventional Loan Guidelines. Call me at (206) 423-4000 if I can be of assistance!

 

Michael Patterson
Branch Manager / Sr. Loan Consultant

MLO - 69386
206-423-4000
Email Michael Patterson

Apply with Michael Patterson FHA Lender in Washington State

 

This is for informational purposes only and is not meant to be legal advice. Underwriting guidelines are subject to change. Land/Home Financial Services, Inc. currently provides loans in 41 States. Some products may not be available in all states. Restrictions apply. Mortgage Lending in Washington State is authorized under WA Dept of Financial Institutions Consumer Loan License # CL-89331. Land/Home Financial Services is an Equal Housing Opportunity Lender and lends only in states we are licensed in.