Buying a Home After foreclosure...has Anyone????

Possible, but up to the bank whether they take that risk or not.

A side note, if you'll indulge. Beware of anyone telling you 3.5% down. My wife is a mortgage broker and apparently there was a banking rule change recently (maybe a law?) that the MAX a bank can lend is 90%, and that most now require 20% unless you have STELLAR credit, and then it's 15%.

I recommend calling your bank and asking the generic question about your foreclosure, and what the standard required down-payment is.

my SIL and Brother, both had forclosure's on their records when going into buying a home together. They were secured a loan, but not for the whole amount. They had to have a huge deposit, and ended up getting a high interest rate, high risk 2nd loan from a shadier loan company to cover the rest of the house. That was almost 10 years ago, they are still paying 2 mortgage payments and they are hoping to re-fi into one lower rate now. Since they have been spot on with this house and payments. Though the preliminary news is not so good. Its hard especially in this economy. The banks are so much more strict with loans and requirements. Be prepared to not hear what you want. It might be better to wait some more.

3.5% is allowed (sorry Dad on Purpose) we do them all the time using FHA mortgages (I've been in the mortgage business since 1998 with a reputable company). Three years is the minimum after a foreclosure.

If YOU have good credit and you would qualify for better terms.... you can buy the house and then add your husband after the fact with a quick-claim-deed. It's pretty easy.

I'm not sure of the severity differential.... but with a bankruptcy that DIDN'T involve a forclosure, it was the magic 10 year mark before interest rates lower and "points" disappear due to the bankruptcy on your credit.

My question would be.... what got you into trouble in the first place and have you taken steps to clean up your credit since then? ie - yes the market was bad.... but plenty of people bought homes 5 years ago and DIDN'T forclose... what was special about your circumstances.... did you buy over your limit, lose a job, no savings plan, over spending?
These things will make a difference to future creditors. They want to see how you have changed behaviors that got you into trouble last time.

Also - only putting 3.5% down will get you upside down on a mortgage really quick. I wouldn't advise doing that.

It's 3 years after the date of the foreclosure, and 3.5% down refers to an FHA loan - this means that the property has to be in very good shape (no buying a fixer-upper - they won't loan money unless the home is in very good condition). We had a foreclosure nearly 4 years ago, and because the 2nd mortgage filed in an odd fashion (basically leaving it open to interpretation whether or not they would sue us for the amount of the 2nd - which was used to keep our 1st from being a jumbo loan, so bottom line, even if they did file, we would have solid legal defense - but still), we have to wait until the statute of limitations (which is 4 years) is up. So, if you had a 2nd on the house, even if it was for the purchase of the home, that may come into play.