How long after foreclosure can I purchase a home?

“How long after foreclosure can I purchase a home” is a common question that comes into our mind when we face foreclosure. Now a days foreclosure has become a daily phenomenon.

We all know that once we face foreclosure, it affects our credit score heavily. Foreclosure drops your credit score by 250 to 300 points and it is shown on your credit reports for almost 10 years.

Foreclosure is not the end of our life. We should start afresh and try to improve our credit score. Generally you can buy a home in 5 to 7 years after foreclosure but if you can improve your credit score quickly by making all payments to all your debts, then you may be able to get a mortgage loan lot earlier.

Now if you have faced foreclosure in extenuating circumstances, which means thing happened in the circumstances beyond your control, then you may be able to get a mortgage loan in 3 to 5 years. Job loss, job transfer, illness, accident etc comes under extenuating circumstances.

So if you face foreclosure not in extenuating circumstances, then you may have to wait for quite a few years. The best thing that you can do in this time period is improving your credit report so that you can be able to get the mortgage loan with better rates and terms.