I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. I introduced a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.... more
The answer is a little more complex than just Fannie Guidelines.
First, a short sale or foreclosure affects everyone diffently, depending on how strong their credit was initially. I have seen a short sale only drop a credit score 30 points, and other times 200 points. It depends on the stability and credit worthiness before the short sale.
Although Fannie Mae does give guidelines, they are just that, and we recently just closed a loan for a couple 15 months from a short sale on a new home. Their credit was a 620 which is probably the minimum you need to shoot for to be a home owner again.
Down payments will be a little higher than what we all have been used to.... more