123123 wrote:
I have a foreclosure that is approx. 2 years old. How long do I need to wait before I can apply for a mortgage? And do all lenders have the same timeframe?
FHA requires 3 years from foreclosure unless there were extenuating circumstances that can be documented - then FHA can be OK with 12 months from the foreclosure. Freddie Mac requires 3 years from foreclosure as well, Fannie Mae just requires 2 years from foreclosure but in a couple months they will start to require 5 years from foreclosure (and I have a feeling Freddie Mac will soon revise their guidelines to require 5 years as well). There are some sub-prime lenders that will be OK with a foreclosure only a year old but the down payment requirements are huge (read: 15-35% down) and interest rates are high (read: 9%+). What was the cause of the foreclosure?
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