How Long After A Foreclosure Can I Buy a Home?

Many people seem to think that your chances of becoming a homeowner again after a foreclosure are slim, but that's just not the case. While a foreclosure does have a serious effect on your credit score, which can make securing a loan or buying a house tough, lots of people survive foreclosure and go on to become happy homeowners once again, just by putting a little work in. But let's get to the facts.

A foreclosure will stay on your credit record for 7 years. You can lobby with your bank or credit agency to have it removed, but chances are it will remain there for the full 7 years. But this doesn't mean there aren't steps you can take to improve your credit score before then. But by continuing to improve your credit score (making credit card payments on time, paying off student or car loans regularly, maintaining a low balance on your credit cards) and disputing your foreclosure and bad credit marks, you can make a significant positive change in your credit score over time.

Credit score is a big factor in how soon after a foreclosure you can buy a home. If you can show that you have had excellent credit since the foreclosure, you'll be in good shape to apply for a new loan within a few years. It's also very helpful if you save up for a big down payment. The bigger the down payment you can make, the more likely you'll be to be approved for a loan.

A foreclosure is far from the end of your dream of home ownership. At they very worst, you can be a homeowner again in 7 years, but with some work to reestablish good credit and improve your standing as a potential buyer, you can cut that time in half.