Thinking of Purchasing After Bankruptcy, Foreclosure, or Short Sale?
Even if you had some financial hardship and suffered through a bankruptcy, foreclosure or short sale, you can purchase a home again. Here are the required waiting times for different types of mortgages. Of course, re-establishing good credit is critical and necessary during this time period. Even without the financial stigma of a bankruptcy, foreclosure, or short sale, the credit score always affects someone's ability to buy a home.
|4 years, or 2 years if documented extenuating circumstances and with reestablished credit|
|2 years from discharge or 4 years from dismissal|
|Foreclosure||7 years, or 3 years if documented extenuating circumstances with reduced LTV and with reestablished credit|
|Short Sale||4 years, or 2 years if documented extenuating circumstances and with reestablished credit|
FHA (Federal Housing Authority) Loans
|Banktruptcy||2 years with reestablished credit|
|Foreclosure||3 years with restablished credit|
|Short Sale||3 years if delinquent at the time of the short sale; however, NO waiting period if current on ALL debt at the time of the short sale
(Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on their principal residence to take advantage of declining market conditions and purchase a similar or superior property, if their short sale was on an FHA mortgage, or if they had a short sale due to job relocation.)
VA (Veteran's Administration) Loans
|Bankruptcy||2 years with reestablished credit|
|Foreclosure||2 years with reestablished credit|
|Short Sale||2 years with reestablished credit|
USDA/Rural Housing Loans
|Bankruptcy||3 years with reestablished credit|
|Foreclosure||3 years with reestablished credit|
|Short Sale||3 years with reestablished credit|
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The Scott Loper Team
Scott & Lisa Loper