In the third quarter, foreclosure rates moved higher. So it is nice that Behind the Mortgage is offering some rather helpful information with regard to when you are eligible for a mortgage again after foreclosure. With more and more people deciding that foreclosure is the smart financial decision (my cousin among them), this is good information to have.

• Foreclosure: 5 years from completion date, minimum
  680 FICO and 10% down for 7 years, investment property, second homes,
  cash out refinances not allowed for 7 years.

• Deed-in-Lieu of Foreclosure: 4 years, at least 10% down required for 7 years.

• Short Sale: 2 years.  4 years for Freddie Mac

For what it’s worth, under FHA rules you have to wait two years before you are born-again.

Behind the Mortgage also points out that if you want a mortgage again after you become eligible, it is important to follow good financial and credit habits so that you can show that you are financially responsible. Also, it is worth noting that saving up for a bigger down payment is a good idea.