Wait Time to Qualify after Short Sale/Bankruptcy/Foreclosure
FHA announced that borrowers with foreclosure/short sale/bankruptcy
"might" be eligible for FHA loans 12 months after the negative event.
They require the borrower to document (with w2's and/or tax returns) that the negative event was caused by at least a 20% loss in household income for at least a 6 month period. They want to see 12 months of most recent on time rent payments, and a full recovery on credit for at least 12 months after the negative event (meaning no collections, late payments, etc.)