FHA Waiting Periods
Have you lost a home to foreclosure, short sale, or bankruptcy? You can become a homeowner once again with some patience.
The Credit Alert Verification Reporting System (CAIVRS) is a large database that credit agencies and lenders access. It helps them prescreen potential homebuyers to see if they have unpaid debt, including real estate loans. Homebuyers must wait a period of time before purchasing another property, and those waiting periods vary by state and by the lender.
If you had an FHA loan on a home and later lost it due to non-payments, it is typically three years before you can purchase another home. It can be tricky to determine exactly when that date is, but the clock usually starts ticking on the date that the FHA insurance claim is paid to the lender. This occurs after the foreclosure. In the event that the lender has delayed submitting the claim, your FHA waiting period could also be delayed.
Can I Avoid the CAIVRS Waiting Period
Since the CAIVRS waiting period applies to FHA loans, the waiting period is different for property purchased with a conventional loan. The waiting period will begin on the date that your name gets removed from the title as the owner of that home. Our team can help you determine how soon you can qualify for a loan with specific lenders.
Bankruptcy and Foreclosure on a Single Mortgage
Wondering what would happen if your mortgage debt was discharged through bankruptcy? In this scenario, the bankruptcy waiting periods could be applied. The lender must be able to properly verify that this mortgage obligation has been discharged in the bankruptcy. In order for the lender to do this, the appropriate documentation must be obtained and presented.
Don’t give up on your dream of a new home! There is always hope. Don’t wait any longer, find the right lender and the right loan today!