Credit Repair

• Expect your credit score to plummet after a home foreclosure. But even if you lose 200 points off your credit score, you can regain these points and prove that you're worthy of credit. If you had other debts, such as credit cards, auto loans or a student loan, continue to make these payments to your creditors each month on time. Timely payments can slowly reverse the effects of a home foreclosure. If possible, completely pay off credit card balances to help raise your FICO score.
  
  

Stick with Your Employer

• The next time you apply for a mortgage loan your lender will look at your employment record to ensure that you've been employed for at least 24 consecutive months. Start planning your next purchase and plan to stay employed (preferably with the same company) for at least two years. Keep records of your tax returns or paycheck stubs during this period to show lenders.
  
  

Consider FHA Home Loans

• Mortgage loans insured by the Federal Housing Administration, or FHA, are an option after losing a home to foreclosure. You can't get an FHA loan immediately after a foreclosure. The minimum required waiting period is three years, which gives you time to regain lost points and build a good credit history. There are certain restrictions. You need a credit score of 620, and you're only allowed two 30-day late payments within a 24-month period.
  
  

Down Payments for Mortgage Loans

• Lenders tend to require higher down payments when someone has a foreclosure in their past. FHA home loans are slightly different, which makes them an attractive option. Even with a foreclosure in your past, you can get an FHA mortgage with as little as 5 percent down. This equals $7,500 on a $150,000 mortgage loan.