How long do you have to wait to purchase after a negative credit event? Unless you are a veteran and qualify for a VA loan then the quickest way to purchase a home after a significant derogatory credit event is with an FHA loan. Here are some guidelines listed per event:
Foreclosure/Deed in lieu 3 years from the date the foreclosure was completed and transferred back to the bank. Less than 2 years if the cause of the delinquency was caused by a major event; death, illness, accident.
Short Sale 3 years from the date closed and transferred to the new owner. NO waiting period if borrower had no late payments on any mortgage or consumer debts within 12 months preceding the short sale and they are not taking advantage of declining market conditions.
Chapter 7 Bankruptcy 2 years from date of discharge with re-established credit paid as agreed or no new credit obligations incurred. Less than 2 years if the bankruptcy was caused by extenuating circumstances and the borrower demonstrates an ability to manage the new loan.
Chapter 13 Bankruptcy 1 year payout period under bankruptcy has elapsed and the borrower payment performance has been as agreed - all required payments made on time.
I hope this helps. I will post VA, USDA and Conforming guidelines later in the week.
Doug Jones
Mortgage Magic NMLS 286668
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