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FHA 203b Program After Foreclosure

by Robert
(Evanston, IL)

Is the FHA 203b loan program only for first time home buyers, or is it also available for people who owned a home in the past, but sold it years ago?

I read that a foreclosure on your record means that you have to wait for 3 years to apply for a FHA loan. Does this refer to a completed foreclosure, where the bank ended up owning the home or does it also refer to when a foreclosure process was started, but the house did not end up being foreclosed on?


Hello Robert,

Thank you for visiting my site and asking such good questions. I can tell you are doing some good research.

Your questions have become popular in the last few months. Many folks that have lost their homes in foreclosure in the past are wanting to buy again.

The FHA 203b home loan is for anybody. Not just first time home buyers. While this is the most often used loan program for first timers, it is still a useful loan program for many others.

This is an owner occupied only type of loan. So in other words you have to live in the property.

Normally you can only have one FHA loan at a time. After one year, it may be possible to rent the home if you have circumstances that dictate you must move. This is rather complicated, but there are some exceptions.

As far as when the 3 year time period is up when a foreclosure has taken place. In almost all cases, it is the date of the sheriffs sale or when the lender takes the property back. Three years from that date a person could consider applying for a new FHA 203b loan.

If for some reason the loss of the home was because of a loss of job, serious illness, family size forces you to buy a bigger house etc. they may make an exception.

Everything is done on a case by case basis and may differ some from lender to lender.

Please do not take my word as gospel, I'm simply sharing with you what I recall when I was in the mortgage business. I may or may not be 100% correct.

You will need to ask these kind of questions of a loan officer. Just make sure you have a person who is very familiar with FHA home loans.

For additional details feel free to visit my page on FHA home loans by clicking here where you will find lots of info and even some recommended lenders.

I hope this helps. Please feel free to like us at FaceBook or give me a shout out in Twitter. I really appreciate any help you can give so others like yourself can learn about these awesome loan programs.

Kind Regards,


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