While Foreclosure is generally a difficult decision to make, the good news for those affected is you will be able to purchase a new home again. The reality is, however, that though it’s possible, it usually isn’t without some challenges. The first challenge that you’ll face when seeking a home loan after foreclosure is the significant damage to your credit. Lenders use your credit score to gauge their risk in offering you a loan. Being that a foreclosure stays on your credit for seven years, most lenders will typically deny your request for a home loan during those years. Going.