Bux-Mont Real Estate and More: Thinking of Purchasing After Bankruptcy, Foreclosure or Short Sale?

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

 

Comments

There are so many post-bankruptcy loan programs out there. Contact The Scott Loper Team Bux-Mont Premier Properties to find out how long after BK before you can get a loan again.

Posted by Dave Halpern, Louisville Short Sale Expert (Keller Williams Realty Louisville East (502) 664-7827) about 1 year ago

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