Mortgage after foreclosure

But they have Better Business Bureau logo on their website. Good place to start checking. Lot's of big criteria for the loan. $100K minimum, 25% down and 6 months of loan payments in reserves. How many people who lose their home to foreclosure actually have that amount of cash on hand?

These must be through private investors because the secondary mortgage market (Fannie Mae and Freddie Mac) have some pretty serious restrictions. With a foreclosure, the waiting period is 5 years up to 7 years. If you have extenuating circumstances-- typically situations beyond someone's control, like a job loss -- it can be cut down to 3 years.

Fannie Mae has just upped the length of time it takes from the completion of a foreclosure sale until the borrower can get a new mortgage from four years to five years.

Perhaps the best option for obtaining a mortgage after foreclosure is with a federally insured FHA loan. The minimum time between the completion of foreclosure until when you can be approved for an FHA loan is three years -- whether or not there are extenuating circumstances. Still, FHA borrowers will have to show that they've been practicing good bill-paying habits since the foreclosure.