Direct Link:
http://www.youtube.com/watch?v=gTY1UVPRk8g
A lot of people ask this question and it’s a great question.
And the answer is- That depends. You see, guidelines are always changing and will continue to change over the next few years.
In fact they JUST changed! So here is how it stands today…
CONVENTIONAL
Bankruptcy – You may apply for a Conventional, Fannie Mae loan after your bankruptcy has been discharged for FOUR (4) years.
Foreclosure – Home was given back to the bank – no owner participation.
- 7 years from the date the foreclosure was completed and transferred back to the bank if the borrower had NO extenuating circumstances. Minimum FICO of 680 required.
- 3 years from the date the foreclosure was completed and transferred back to bank with acceptable extenuating circumstances, AND 10% down payment. Primary home purchase and rate/term refinance only. Non‐owner and second homes not allowed
Short Sale / Deed in Lieu of Foreclosure -
Short Sale- Home sold, but sales price didn’t cover amount owed.
Deed‐in‐Lieu- Home returned to lender in exchange for canceling the loan.
- 7 years from date sale closed and transferred to new owner or transferred back to the bank for less than 10% down payment and minimum FICO 680.
- 4 years from date sale closed and transferred to new owner or transferred back to the bank with 10% down payment and minimum FICO 680.
- 2 years from date sale closed and transferred to new owner or transferred back to the bank may be possible with acceptable extenuating circumstances and 10% down payment.
Bankruptcy Chapter 7- Debts are discharged through BK, client does not pay any debts owing.
- 4 years from date of discharge - 2 years from discharge date may be possible with acceptable extenuating circumstances
Bankruptcy Chapter 13- Debts are paid back on a monthly scheduled payment plan by client.
- 2 years from date of discharge or
- 4 years from dismissal date
FHA (DETERMINED BY DATE OF CREDIT APPROVAL)
Foreclosure, Deed‐in‐Lieu of Foreclosure
Foreclosure: Home was given back to the bank – no owner participation.
Deed in Lieu: Home returned to lender in exchange for canceling loan.
- 3 years from date foreclosure was completed and transferred back to bank.
- Less than 3 years, but not less than 12 months from date foreclosure was completed and transferred back to bank may be acceptable depending on the results of acceptable extenuating circumstances.
Short Sale- Home sold, but sales price didn’t cover amount owed.
- 3 years from date sale closed and transferred to new owner. - No waiting period if borrower had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale, AND borrower is not taking advantage of declining market conditions. Subject property may not be in the same geographic region.
Bankruptcy Chapter 7- Debts are discharged through BK, client does not pay any debts owing.
- 2 years from date of discharge with re‐established credit paid as agreed or no new credit obligations incurred.
- Less than 2 years, but not less than 12 months from date of discharge may be acceptable if the bankruptcy was caused by acceptable extenuating circumstances, and the borrower has since exhibited a documented ability to manage financial affairs in a responsible manner.
Bankruptcy Chapter 13- Debts are paid back on a monthly scheduled payment plan by client.
- 1 year payout period under bankruptcy has elapsed and the borrower’s payment performance has been satisfactory; and all required payments made on time.
VA (DETERMINED BY DATE OF CREDIT APPROVAL)
Foreclosure, Deed‐in‐Lieu of Foreclosure Foreclosure: Home was given back to the bank – no owner participation.
Deed in Lieu: Home returned to lender in exchange for canceling loan.
- 2 years from date foreclosure was completed and transferred back to the bank.
- 12‐23 months from date foreclosure was completed and transferred back to bank; if credit re-established and paid as agreed, and was caused by acceptable extenuating circumstances.
Short Sale: Home sold but sales price didn’t cover amount owed.
- 2 years from date sale closed and transferred to new owner. - No waiting period if borrower has no late payments on any mortgages and consumer debts within the last 12 month period preceding the short sale, AND the borrower is not taking advantage of a declining market.
Bankruptcy Chapter 7- Debts are discharged through BK, client does not pay any debts owing.
- 2 years from date of discharge.
- 12‐ 23 months from date of discharge if credit is re‐established and paid as agreed; and was caused by acceptable extenuating circumstances.
Bankruptcy Chapter 13- Debts are paid back on a monthly scheduled payment plan by client.
- 1 year payout period under bankruptcy has elapsed and the borrower’s payment performance has been satisfactory and all required payments made on time.
When you are ready to get back into the housing market or for more information please contact me at 510-282-5456 or info@garrick.biz.
Related Articles:
Feds Announce Bay Area Real Estate Mortgage Interest Rates to Stay Low Until 2014
Home Affordable Refinance Program Update HARP 2
Restoring FHA Loan Limits
http://the-buzzz.com/2011/11/17/restoring-fha-loan-limits-in-alameda-ca/
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