First Time Home Buyers

From Foreclosure to home owner

Some people who have been through a foreclosure are not at all interested in buying a home again but others are.  Here are some guidelines for how long a borrower has to wait before they can borrow again. In general it takes 2 to 7 years to recover from a foreclosure or short sale or deed-in-lieu depending upon the circumstances. 

Sign Of The Times - Foreclosure

Photo by Jeff Turner

Foreclosure:

Seven years for a government-backed Fannie Mae or Freddie Mac loan.

Three years for a Federal Housing Administration (FHA) loan.
One to two years for a FHA loan if there were extenuating circumstances (such as illness or death of a wage earner).

Short sale:

Seven years for Fannie Mae or Freddie Mac with less than 10 percent down.
Four years for Fannie Mae or Freddie Mac with 10 percent down.
Two years for Fannie Mae or Freddie Mac with 20 percent down.
Three years for an FHA loan.
Deed in lieu of foreclosure:

Seven years for Fannie Mae or Freddie Mac with less than 10 percent down.
Four years for Fannie Mae or Freddie Mac with 10 percent down.
Two years for Fannie Mae or Freddie Mac with 20 percent down.
Three years for FHA.
One to two years for FHA loan with extenuating circumstances.

Source: Fannie Mae, Department of Housing and Urban Development

Contact

Teresa Boardman
Realtor®, MN,
Licensed Broker
Saint Paul Home Realty
651-216-4603
teresa(at)tboardman.com
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