The standard waiting periods from the date the foreclosure was completed are: FHA three years, VA two years, USDA three years, and conventional seven years or three years with documented extenuating circumstances. Non-QM loans may allow purchasing as soon as one day after foreclosure with a 20 to 25 percent down payment. These waiting periods are firm for government and conventional programs, so knowing your exact foreclosure completion date is critical for planning.

Extenuating circumstances are nonrecurring events beyond your control that caused the financial hardship leading to foreclosure. Examples include job loss or layoff, serious illness or disability, death of a wage earner, divorce, or a natural disaster. To qualify for reduced waiting periods, you need documentation such as termination letters, medical records, divorce decrees, or insurance claims, plus a written letter explaining the circumstances and demonstrating that your current financial situation has recovered and is stable.

Not necessarily with government programs. After the waiting period, FHA still allows 3.5 percent down with a 580 score, and VA still allows zero down for eligible veterans. Conventional loans may require a higher down payment during the extended waiting period. However, a larger down payment, regardless of requirement, strengthens your application, demonstrates financial recovery, and protects you with immediate equity in your new home.

Once you have passed the required waiting period and rebuilt your credit, your interest rate is determined primarily by your current credit score, loan program, and down payment, not by the past foreclosure. A borrower with a 660 score three years after an FHA-eligible foreclosure will receive essentially the same FHA rate as any other 660-score borrower. The foreclosure becomes less relevant with each year that passes and each point your credit score recovers.