When Can I Buy a Home After a Foreclosure? Bankruptcy? Short Sale?

When Can I Buy a Home After a Foreclosure? Bankruptcy? Short Sale?

 If you've recently experienced foreclosure, bankruptcy or a short-sale, you are  wondering when you'll be able to purchase a home again. Now when I say purchase a home, I mean doing so with the aid of a mortgage; obviously you can buy a home with cash at any time if you've got the funds yourself.

 One of the most common questions I'm asked as a Mortgage Loan Officer is; "How long after a ______ can I purchase a home?"

 Well there is an answer, BUT it takes some explaining to get there. Luckily you've come to the right place. FHA & VA are Government "Guaranteed" loans and Fannie Mae and Freddie Mac are known as Conventional loans. They each have their OWN minimum standards or Guidelines. To add to the confusion, different Lenders can, and DO, add their own more strict guidelines on top of these called "Over-Lays".

There has been more changes in the Mortgage industry in the last year and a half than ever before. These changes at times seem to come monthly or even weekly. It has been VERY hard to keep up with. SO, as of TODAY, below are the "CURRENT" guidelines:

 Loan Type       Bankruptcy                Foreclosure*              Short-Sale

   FHA                    2 years                         3 years                         3 years 

   VA                      2 years             2 yrs/May Loose VA**         2 years 

  Conventional    4 years                         5 years                         2 years 

   USDA               3 years                         3 years                         3 years 

*  In the case of foreclosure, The waiting period begins once change of ownership has been RECORDED.

** If the foreclosure was on a VA loan, full entitlement may not be  restored.