Former homeowners that foreclosed or had a short sale may be able to purchase a home sooner than they expected. Currently, the wait time to qualify for a home loan is 3 years through the Federal Housing Administration and 7 years through Freddie Mac and Fannie Mae. If you want to purchase a home soon, look into the following:
- A loan may be able to be secured with a higher interest rate.
- If a short sale was due to a job loss, the wait time may be waived.
- The time can be cut in half, or more, if a borrower can come up with a higher down payment. For example, Fannie Mae will reduce the wait from 7 to 2 years with a 20% or more down payment.
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