Tag Archives: Foreclosed Home Owners Rebound Faster With FHA Loans

Home owners who experienced foreclosures are finding themselves owning again sometimes only three years later—possibly even less—with Federal Housing Administration-backed loans. Mortgage giants Fannie Mae and Freddie Mac usually require a seven-year wait following a foreclosure. However, the FHA will approve loans after three years, if the borrower can show good credit and ability to pay the mortgage. The FHA insures loans with low down payments, such as 3.5 percent, and tends to have greater flexibility with income requirements too. “There’s definitely a movement of folks who had a foreclosure […]