Waiting Period to Buy a Home after a Short Sale or Foreclosure

Beginning Oct 1, 2010 FannieMae (FNMA) has changed their lending guidlines.
For homebuyers with a Foreclosure the waiting period is now 7 years.
For homebuyers with a Short Sale or Deed in Lieu the waiting period varies:
2 Years with 20% Down Payment
4 Years with 10% Down Payment
7 Years for other Loans

FHA Loans require a 4 Year waiting period after a Foreclosure
The FHA waiting period after a Short Sale is 3 Years

There are many other requirements and certain Extenuating Circumstances can shorten the waiting period.
Only deal with a knowledgable, experienced loan consultant - you can call or email us for a recommendation to lenders who will be able to provide you with details of the current loan requirements.

For those Homeowners trying to decide if they should bother with a Short Sale, one of the questions to ask is: Would you rather have the option to buy again in 2, 3 or 4 years versus waiting up to 7 years? Many people think home prices and interest rates may still be affordable in 2 or 3 years, but in 7 years - inflation, higher interest rates and higher home prices are a much greater possibility.