Yes, you can get a mortgage after a foreclosure.

More Info: Fannie Mae has recently changed the lapse between a foreclosure and applying for a new mortgage from four years to five.  In the case of extenuating circumstances and for FHA loans the lapse is three years.

Any consumer that has struggled with finances in the past is well aware that credit issues will make borrowing money more difficult, including obtaining a mortgage after a foreclosure.

Every individual's set of circumstances are obviously going to differ. However, you can more accurately predict your chances of gaining mortgage approval if you consider the following factors that a lender will most likely focus upon.

Extenuating Circumstances Surrounding a Past Foreclosure

Many challenges can be present that would cause homeowners to struggle with their bills. If the uncertain economic times resulted in a job loss or other unique challenge, it can often help to explain the circumstances to a prospective lender. Medical bills and rising healthcare costs can also place a consumer in a predicament, and mortgage providers actually want a prospective borrower to be completely honest with the obstacles that they have faced in the past.

Responsible Behavior After a Foreclosure

The best way you can help a credit score rebound and increase the chances of obtaining a mortgage after a foreclosure is to prove the presence of responsible behavior. Lenders are often willing to give a second chance to a consumer that has taken the necessary steps to handle their finances appropriately. You can obtain letters of reference from utility companies or a landlord to establish a good payment history, and the information can greatly improve your odds of being approved for a loan.

Job Stability and Household Income

Lenders can often overlook the past as long as everything else is in order, but you must have the ability to pay for the mortgage that you are trying to obtain. Job stability is a factor that has become very important to loan providers, and it actually plays more of a role than the actual amount of income. Household income is still used in determining whether the payment is going to be affordable, but a stable position is going to be much more appealing on a loan application.