The most current Fannie Mae "Selling Guide", located at https://www.efanniemae.com/sf/guides/ssg/sg/pdf/sel081210.pdf indicates the following concerning foreclosures on page 423:
A seven-year waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.
Exceptions for Extenuating Circumstances
A three-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the completion date of the foreclosure action. Additional requirements apply between three and seven years, which include:
â€¢ Maximum LTV ratios of the lesser of 90% or the maximum LTV ratios for the transaction per the Eligibility Matrix.
â€¢ The purchase of a principal residence is permitted.
â€¢ Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at that time.
Note: The purchase of second homes or investment properties and cash-out refinances (any occupancy type) are not permitted until a seven-year waiting period has elapsed."
You must wait 3 years AND have a qualifying score. Here's some tips on how to improve your score during your seasoning period. I wrote this specifically for your situation.
Just to add to the good answers you've received so far, your 3 years starts not from the date of the sheriff sale, but from the date your redemption periods ended and the property official went back to the bank. In MI, our redemption period after the sheriff sale is 6 months.
Faith Home Loans
Please see my blog for tips and advice on getting a mortgage
There are lenders out there who will do loans the day after foreclosure. They will cost you more, but they are available. You do not need to wait 3 years! You will have to weigh out the costs and benefits. If you would like me to put you in contact with my lenders, just give me a call!
Joshua Metcalf, Broker
Del Mar Real Estate Group
EXPERIENCE | HARD WORK | RESULTS
Yes, but it will take some time after the foreclosure. Currently to qualify for Fannie/Freddie backed loans you 5 years to have past since your foreclosure to be considered. It's also important that your credit record be very clean and that you have saved up some down payment.