The great recession of the 2000-aught-years was one for the record-books. Fine, upstanding citizens from all across the country lost their jobs and then their homes. While some of those who faced foreclosure were n’er-do-wells, most were dedicated to keeping their finances in good order.
As the job market slowly recovers, people again want to buy their own home. The question arises about when they will be able to do this. While foreclosures stay on a credit history for at least seven years, it could take only three years to qualify again to buy a home.
According to Steve McLindon of Bankrate.com, there are conventional loans to be had. But you’ll need to save ahead to put 20 percent down in order to qualify,
Even though a foreclosure lingers on your credit report for seven years, it’s very unlikely you’ll be shut out from a conventional mortgage loan for that long. Fannie Mae, America’s largest mortgage buyer, has said the waiting period is a minimum of three years before you can get a mortgage loan again following a foreclosure due to extenuating circumstances. It’s roughly the same time frame you’ll find for Federal Housing Administration- and Freddie Mac-backed conventional mortgage loans. All three are considered conforming lenders.
The advice columnist goes on to say that continuing to pay your bills on-time and pay-off old debts (or dispute those that are laid unfairly at your feet) will also help you get back into home ownership.
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