FHA will allow you to buy 2 years out of a Foreclosure or Bankruptcy, so you may want to check for a Deed in Lieu... I can't imagine it would be any longer. That is 3.5% down and you need a credit score of 620 or better.

Rural Development loan only requires that you can pay for your home, and your credit is OK. If your credit score is 640 or higher they actually don't look into your credit report... sounds great right... there is a catch... this loan has income restrictions... you can not make more than a certain amount (different for each area) and you will need to go to a local Rural Development office for the loan. They are backlogged right now and take a little longer, but if you qualify it is well worth the rate. They can adjust the interest rate to help you buy more of a home, and there is ZERO percent down... this loan also has NO mortgage insurance... there is however a 1.75 % MIP.... which can be mortgaged in.

You also have to be looking in a RURAL area... I am not sure as to your area

If for you make more than the office allows, you can get this loan through a bank (I like National City Mortgage)... 2 years out of Bankruptcy, so I would check a Deed in Lieu.... you are allowed to make a bit more money to qualify.

A link to search is http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do -- you can find out your area's income limits as well as locations that qualify for the program.

Regular mortgages through fanny mae and freddie mac are 3 years out of foreclosure or bankruptcy... so once again assuming 3 years out of deed in lieu...

The best thing to do is pay down debt and get your credit score up... even if you have to pay someone to help you.

We have been seeing a lot of foreclosures and bankruptcy in the area and as of I now this is the best that I have found. I will be reading what everyone else has to say to see if I am missing something...

Good Luck!

I know the Rural Development Loan is a bit tricky... but play with that link. If you have an area where it covers around you it is a great loan to get back into home ownership.

As to your down payment, that will depend on your terms of the home you purchase, if you get a seller carry you might only need 5 or 10%, a hard money loan will likely require up to 30%. It is a very real possibility you could qualify right now if you have 20% down and your credit has been good since your foreclosure. 2 years on most bad marks is a threshhold, so you might want to check into it with a local lender, and don't give up on the first "no" you get, approach several lenders and ask many questions (they are not all the same by far).

yes, you will need to put some time under your belt before a bank will lend you money under normal/traditional terms before you can buy again, however there are some lenders, called hard money lenders, that might consider loaning money to a person in your situation sooner. There are also some sellers that are distressed that might carry the note as well, or you could do an all inclusive trust deed, thats where you basically take over payments. To sum it up there are many possible options for a person who has experienced foreclosure to purchase another home, with a little creativity and a willing seller it is possible. I have represented many clients, some just months out of foreclosure, on another purchase. Don't give up, with a little hard work you will be in your own home again. My best of luck to you.