According to the 2019 Home Buyer Report from NerdWallet, “Thirteen percent of Americans have lost a home due to a financial event such as foreclosure in the past 10 years. More than 6 in 10 of them (61%) have not bought a home since."
Obviously, If you or someone you know has lost a home due to a foreclosure it's a devastating event but it doesn't mean it's the end of home ownership.
As a rule of thumb, most lenders require a waiting period of 7 years on a Conventional loan to be able to purchase again. If you can prove a hardship during that foreclosure time (medical, loss of income, etc..), it can be as little as 3 years. Your credit score must also qualify. FHA loans are a 3 year waiting period, and may be shorter with a hardship. I see many of those who have lost their home getting back in the market today.
Home ownership has so many more benefits than just financial ones. Every individual should figure out what is best for his or her own family situation. If you or someone you know has lost a home due to a financial event and would like to review your options, let us help you map out a plan for your next home.