A foreclosure has a negative impact on your credit score, which is a major factor in determining eligibility for a mortgage. Borrowers with a foreclosure on their credit history can still get home loans from some lenders, however. If a foreclosure is less than 7 years old, lenders will probably be less likely to approve your home loan, charge higher interest rates and require a larger down payment. Fannie Mae and Freddie Mac home loans require a seven-year waiting period after a foreclosure, while USDA and FHA loans require three years. A VA loan only requires two years to have passed from foreclosure.