[Nia2]

foreclosure on a FHA loan? Can we buy a home again using a VA loan after a foreclosure on a FHA loan?I was told that even after foreclosing on a FHA loan we can still use a VA loan to purchase a home. I was told after 1-2 yrs we can do this because VA loan is a guaranteed loan and is available to military/veterans even with black marks on their credit. Is this true? If so how long after a foreclosure can one get a VA loan?

[andy]

I am not sure how long it would be after foreclosure before you can get the VA loan, but remember that if you don't have a down payment and if you can not make the payments then it would be stupid to buy another house. Also, just like a FHA loan, the VA loan has very strict guidelines to be able to get it.

[emcpower]

Under new fannie mae/freddie mac guidelines, which VA follows, you must wait 2 years after a short sale to buy a new home, 5 years after a foreclosure, and 7 years after a Bankruptcy. This is completely seperate from how these effect your credit score. Almost all conventional loans follow these guidelines as well because FHA is the only place they can now sell mortgage loans. IT MAKES NO SENSE TO DO A FORECLOSURE INSTEAD OF A SHORTSALE! Anyone who thinks there is no other option should do a shortsale with a REALTOR. The credit consequences are greatly reduced because the shortsale is seen as working with the lender to solve the problem vs. a foreclosure which is seen as ignoring the problem. The lenders prefer this option so much, they will pay the REALTOR and you don't have to.