When can a borrower get a home loan again after a distress sale?

When can a borrower get  home loan again after a Distress Sale?

A lot of people ask me this question. I turned to one of my expert lenders for the answer.

A Distress sale is defined as one of the following

Foreclosure ,Deed in Lieu, Short Sale & Bankruptcy

The three types of loans I asked the lender about were FHA, Fannie Mae (aka Homepath)  or VA.

Conventional Loans were not addressed.

A borrower can obtain a loan after  Foreclosure :

FHA-3 years from date of completion

Fannie Mae -years  

VA- 3 years from date of discharge/completion

A borrower can obtain a home loan after Deed in Lieu:

FHA-3 years from date of completion

Fannie Mae-2 years

VA-3 years from date of discharge/completion

A borrower can obtain a home loan after a Short Sale:

FHA-3 years from date of completion

Fannie Mae-2 years

VA- 3 years from date of discharge/completion

A borrower can obtain a home loan after a Bankruptcy:

Bankruptcy- Chapter 7:

FHA- 2 years from date of discharge

Fannie Mae-4years from the date of discharge

VA-2 years from date of discharge

Bankruptcy-Chapter 13:

FHA- 1 year of the payout period must have elapsed & written permission form the bankruptcy court

Fannie Mae- 2 years from date of discharge and 4 years from date of dismissal

VA- 1 year payout period must have elapsed & written permission from the court

The lender also told me that a person under Consumer Counseling Plan can also obtain a new home loan under each of the plans  1 year from release of the program with written permission from the counseling agent.

       So be hopeful, keep the faith and jump for joy! You can qualify for a home loan again!