GONE THROUGH FORECLOSURE? YOU CAN BUY AGAIN

LIVERMORE, CALIF. -

R.C. and Stacy Davis lost their condominium to foreclosure in 2009, a bad break that seemed destined to keep them from buying another home for many years.

Yet last week - only three years after their foreclosure - the couple signed the papers to buy a four-bedroom house.

Their avenue to homeownership? A loan backed by the Federal Housing Administration.

The ability to get an FHA loan so quickly after a foreclosure could be welcome news to thousands of people who lost their homes during the housing bust.

Mortgage giants Fannie Mae and Freddie Mac make people wait seven years after a foreclosure, but the FHA will approve loans after three years, providing the buyer has established good credit and the ability to pay the mortgage.

The FHA, which is self-supporting, provides mortgage insurance for loans with low down payments and more flexible household-income requirements. The Davis loan came with a 3.5 percent down payment, plus it required monthly mortgage insurance and a 3.75 percent interest rate on a 30-year loan.

But it's not clear whether there's a flood or a trickle of new borrowers with foreclosures in their recent past.

The FHA said it doesn't have data on how many of the loans it insures involve people who are buying homes after a foreclosure or short sale.