One of the questions I’m asked by sellers facing a short sale or foreclosure is will I ever be able to buy a home again? The answer is YES but there are Fannie Mae Guidelines mortgage companies will be required to follow.
With a 20% down the wait time is generally:
Deed in Lieu of Foreclosure-2 years
Short Sale- 2 years
The time increases if you your LTV (Loan to Value) is higher than 20%.
The biggest things to consider before you decide you want to buy a home again after waiting is whether your financial circumstances are stable and whether home ownership is right for you. If the answers are YES then consult a qualified mortgage professional to see how the new Fannie Mae Guidelines will impact you.
Then consult a Realtor® to help you find the new home that will be right for you.