If you lost your home to foreclosure, Fannie Mae and Freddie Mac make you wait 7 years to qualify for a mortgage again, however FHA will allow a buyer to qualify for a new mortgage after 3 years. The buyer must have reestablished their credit, have a job and qualify for the new mortgage like all other buyers.
San Diego, where I live, was the first major metropolitan area to feel the housing crash. We had prices tumbling months before it hit other areas so some of our former home owners are reaching the end of that 3 year waiting period this year. Some of these people have worked very hard to rebuild their credit and are looking for a way to restart their home ownership dreams.
Neither FHA or any of the major lenders are keeping track of the number of foreclosed home owners who are reentering the market but it is expected that the dream of a home didn’t die when the original home was lost. I have spoken with a few people over the last year who lost their homes but not their dreams. They realize their mistakes, are living a much more modest life style and working hard to reestablish themselves. For these people, the FHA program is a step toward their home ownership dream.
If you are looking for options in purchasing a San Diego home, contact me so I can help.