Seeing how 41% of all of the home sales in the Southern California Real Estate I am sure there are many people wondering how long it will take, and what do they need to do in order to purchase their next home. How soon you will be able to buy, depends on the type of loan that you are trying to qualify for and the reason for your default. Below is a general summary that is sure to help you out.

BUYING AFTER A SHORT SALE

FHA FINANCING

• Purchase immediately with no mortgage default. Max loan amount is $729,750. Requires 3.5% Down.
• 3 Year wait if in default at the closing of the sale of the Short Sold property.
• Reduced wait if the borrower has re-established good credit and can show extenuating circumstances.

FANNIE MAE LOAN

• 2 year wait if borrower puts 20% down.
• 4 year wait if the borrower put 10% – 20% down.
• 7 year wait if the borrower puts less than 10% down.
• 2 year wait if the borrower can show extenuating circumstances.

FREDDIE MAC LOAN

• 4 year mandatory waiting period.
• 2 year wait if the borrower can show extenuating circumstances.

BUYING AFTER A FORECLOSURE

FHA FINANCING

• 3 year mandatory waiting period. Max loan amount is $729,750. Requires 3.5% Down.
• Reduced waiting period if the borrower can show extenuating circumstances and re-establishes good credit.

FANNIE MAE FINANCING

• 7 year mandatory waiting period following the date of foreclosure.
• 3 year wait if the borrower can show extenuating circumstances. Additional underwriting requirements will apply for a 4 year period following the mandatory 3 year waiting period.
• 7 year mandatory waiting period for a 2nd home, cash out re-finance or investment property.

FREDDIE MAC

• 5 year mandatory waiting period following the date of foreclosure.
• 3 year waiting period if borrower can show extenuating circumstances.

*A deed-in-lieu of foreclosure follow the same guidelines as the foreclosure policies.

The information contained herein is deemed accurate but is not guaranteed and is subject to change. All parties are advised to independently verify the accuracy of this information through their own independent research