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Thinking of Purchasing After Bankruptcy, Foreclosure or Short Sale?

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.

 

Conventional Loans

Bankruptcy          
(Chapter 7)
4 years, or 2 years if documented extenuating circumstances and with reestablished credit
Bankruptcy
(Chapter 13)
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

Scott Loper Team at Keller Williams Real Estate

 

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