And a word about extenuating circumstances...it has to be something major and fully documented. It is very rare that an loan underwriter will approve an exception to not wait the full period after foreclosure. It can't be that you lost your job and got into financial difficulties. It has to be something like a documented major illness or a forced job transfer out of area.
1. Conventional financing - 7 years if no extenuating circumstances, but only 3 years and a 10% down payment if deemed extenuating circumstances.
2. FHA - 3 years. If less than 3 years, but more than 12 months, it might be okay with extenuating circumstances.
3. VA - 3 years. Or 12-23 months if credit re-established and paid as agreed, and caused by extenuating circumstances.
4. USDA- 3 years. Or less than 3 years with acceptable extenuating circumstances.
Extenuating is defined as a non-recurring event that is beyond the borrowers control that results in a sudden, significant and prolonged reduction in income, such as a serious illness or death of a wage earner. Divorce is not viewed as acceptable, however alot of serious medical conditions are.
I hope that helps and clears things up.
Yes the other agent is right, make sure your credit score comes up over the years....
Even for renting they will want your credit and back ground check these days....
Be very careful and explore all your options carefully with the right and experienced professionals.
Good Luck to you