Many homeower's were victims of the economy and and lost homes during the last few years. If you know someone like that, make sure that they are aware of two programs designed to help them become homeowners again.
After one year - FHA Back to Work Program
After two years - Pre-foreclosure short-sale exclusion.
Both programs require that you have at least one-year of clean or "re-established" credit. Those who have 20% to put down, and can wait the two years, will find that the second program is best - lowest cost, lowest rate, no PMI. Those that need the one year program will need to meet the FHA guidelines plus attend a counseling class. FHA loans also require the upfront and monthly(life of loan) mortgage insurance.
Because underwriters sometimes have different opinions as to how to interpret these guidelines, it is always best to contact a mortgage broker who can present scenarios to different lenders before a purchase contract is signed.
Have a great day!