7 Years After Foreclosure Before You Can Buy Again?

[Anonymous]

I was just speaking to my LO, and she said the criteria for getting a home after foreclosure for USDA, FHA, and the DE Mortgage Bond went from 3 years to 7 now. I haven't seen this or read this anywhere, and I think I would have considering the consequences to the still fragile housing market. This was Wells Fargo. Can anyone confirm or deny this?

[chasmith]

Wells Fargo (or any lender) may impose tougher standards than USDA / FHA / DE Bond.  Is it possible your LO was quoting the Wells Fargo requirement for them to orginate these loans?

[Anonymous]

I do nto believe that is true.  That may be the case with the INVESTORS that your LO works with.  Typically they want 3 years post foreclosure sale date.  USDA is even less occasionally with solid compensating factors.  Either the LO has misunderstood something, the investors they work with have tighter restrictions, or it is some sort of local phenomenon (like maybe your LO or the office they work for has sent in too many loans that were bad and someone has tightened up what they will allow THEM to submit. )

[DallasLoanGuy]

It is called Lender Guideline Overlay.

Anther lender can help you and still sell your loan to Wells Fargo.... strangely