Damaged Credit....When Can I Buy Again?

By
Managing Real Estate Broker with Arizona Real Estate Options

 

Foreclosure Short Sale Bankruptcy

When can a homeowner obtain financing to buy again after a SHORT SALE, FORECLOSURE or BANKRUPTCY?

Here is the latest information on expected wait times (including recent changes):


SHORT SALE

 

  • Conventional or Fannie Mae Loan:  2 yrs w/ 80% LTV (20% down payment)

                                                              4 yrs w/ 90% LTV

                                                              7+ years higher LTV

  • * FHA Loan: 3 years
  •  VA Loan: 2 years
  •  Jumbo Loan: 5 to 7 years

 

FORECLOSURE

 

  •  Conventional or Fannie Mae:  7 years
  •  FHA: 3 years
  •  VA: 2 years
  •  Jumbo: 7 years

 

BANKRUPTCY (Chapter 7)

 

  •  Conventional or Fannie Mae:  4 years
  •  FHA: 2 years
  •  VA: 2 years
  •  Jumbo: 4 years

 

 

* THERE IS ONE FHA LOAN AVAILABLE THAT WILL ALLOW A HOMEOWNER TO SHORT SELL AND BUY AGAIN RIGHT AWAY*

Click here for more details

It is important to note just because the TIME period has passed does not mean the FICO score will automatically be up to par. Buyers must take steps to repair credit during this waiting time.

If you or someone you know in the Phoenix Area is struggling to make mortgage payments, please call a Distressed Property Expert.

***UPDATE AUGUST 2011**

RE Options is now working exclusively with an area lender willing to loan to people with a short sale/foreclosure and or Bankruptcy on their record. NO WAIT TIMES. Rates vary depending on the individual (approx 5-7%) and in most cases 10-20% down is required. This is NOT a private hard money lender, this is a bank that has been in business for years with competitive rates and compassion for those with housing related credit issues. Several clients have already obtained one of these loans. Call for more details.

 


 

Comments (2)

Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

Not too bad. I was having a conversation with someone about this last week. Thanks for the information

Apr 14, 2011 01:06 PM
Kristine Ginsberg
Elite Staging and Redesign, LLC - Short Hills, NJ
NJ Home Stager

Laura - see, I learn something every day on Active Rain - good information and laid out nicely!

Apr 14, 2011 04:41 PM