New regulations and loan programs are available for condo purchases after foreclosure
Portfolio Condo Loan:
Portfolio loans are great for condos if you have a 25-30% down payment. You can look into getting a portfolio loan immediately after a foreclosure or short sale, with less strict guidelines than other loan options.
FHA Condo Loan:
Recent changes in Federal Housing Authority rules have made it possible to get an FHA-backed loan as soon as a year after completing foreclosure, if you can prove an economic event outside of your control caused the foreclosure. According to the U.S. Department of Housing and Urban Development, you must have documented proof that a catastrophic event such as a job loss or medical emergency reduced your income by 20 percent for over six months. If you can’t provide proof of such an economic event, the standard waiting period for an FHA loan is three years. The most difficult part of getting a FHA condo loan is that the condominium must be an FHA approved condo according to U.S Department of Housing and Urban Development, or (HUD). To check if the condominium you are interested in qualifies for an FHA loan you can check at: https://entp.hud.gov/idapp/html/condlook.cfm
VA Condo Loan:
The Department of Veterans Affairs-backed loans have a two-year waiting period, but not everyone qualifies for a VA loan. To apply, either you or your spouse must be a veteran or currently serving in the United States military. If you do qualify under those circumstance there is also minimum qualifications such as, fifty percent or more of the building must be owner-occupied, no more than 15 percent of owners can be behind in Homeowners Association (HOA) fees, and If condos are newly constructed, 75 percent of the units must be sold prior to allowing VA loans.
Conventional Condo Loan:
Conventional mortgage loans requires a waiting period before you can apply after a foreclosure. Conventional loans backed by Fannie Mae or Freddie Mac require the longest waiting period that can be from 5-7 years after, and Conventional loans may also come with stricter credit and debt-to-income requirements.