In today’s market there are a lot of short sales and foreclosures.  If you are one of the unlucky home owners that had to go through this process then you will have a waiting period before you can get qualified for another home loan.  Depending on the type of loan you want or need for purchasing your next home, you will have different requirements.  If you had to file a Chapter 7 or Chapter 13 there are also requirements before you can get a home loan.  Please see below:

Conventional Loans Require:

  • Chapter 7 BK – 4 year waiting period from the discharge/dismissal date
  • Chapter 13 BK – 2 year waiting period from the discharge date or 4 years from the dismissal date
  • Multiple Bankruptcies – If there are multiple bankruptcies within a 7 year period, the waiting period is 5 years from the most recent discharge/dismissal date
  • Foreclosure – 7 year waiting period from the completion date
  • Deed-in-Lieu/Pre-Foreclosure Sale (Short Sale) – Minimum 2 year waiting period

 

FHA/VA Loans Require:

  • Chapter 7 BK – 2 year waiting period from the discharge/dismissal date
  • Chapter 13 BK – 1 year of the payout must have elapsed and the borrower’s performance must have been paid as agreed.  Document that the borrower’s current situation is not likely to recur.  The court must grant permission to the borrower to enter into a mortgage transaction.
  • Foreclosure/Pre-Foreclosure/Short Sale – 3 year waiting period
  • VA Loans ONLY – 2 year waiting period for Foreclosures
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