Often we get questions about how long do I have to wait after a foreclosure to buy a home. While your specific circumstances can greatly affect the answer, here are some general guidelines:
- FHA must wait three years from the date of their foreclosure. FHA may grant an exception to its waiting period in the event a wage-earner becomes seriously ill or dies. A divorce may also qualify for an exception.
- U.S. Department of Agriculture’s housing program requires three years.
- VA loan is two years.
- Fannie Mae and Freddie Mac require seven years after a foreclosure unless the foreclosure was due to circumstance such as job layoff, medical bills or divorce, etc.
A short sale in your credit history can be less severe:
- FHA requires borrowers who weren’t paying their mortgage when they sold their house to wait three years before they can qualify for a home loan. That time penalty may be waived or shortened in certain cases, including long-term job loss.
- There is no FHA time penalty for homeowners who made their house payments in the 12 months before their short sale.
- A down payment of 20 percent or more will cut Fannie Mae’s time penalty to two years from seven. Buyers who put down 10 percent can qualify after four years.
For answers to your specific situation, you should contact a lender. We can refer you to conscientious and competent lenders to assist you with your decision to purchase a home.