Mortgage Loans AFTER Bankruptcy, Short Sale & Foreclosure

Here are the general rule of thumb guidelines:

CONVENTIONAL LOANS:

Foreclosure – 7 years or 3 years with extenuating circumstances

Short Sale - 4 years with 10% down / 2 years with 20% down

Bankruptcy – Chapter 7 requires 4 years have elapsed from time of discharge

- Chapter 13 requires 2 years from discharge or 4 years from dismissal

FHA LOANS:

Foreclosure - 3 years or 2 years with extenuating circumstances

Short Sale - 3 years **NO waiting period if property included in short sale had a mortgage that was NEVER late and seller was NOT taking advantage of declining markets

Bankruptcy – Chapter 7 requires 2 years have elapsed from time of discharge

- Chapter 13 requires 1 year after repayment has elapsed and in good standing

VA LOANS:

Foreclosure - 2 years

Short Sale - 2 years **NO waiting period if property included in short sale had a mortgage that was NEVER late and seller was NOT taking advantage of declining markets

Bankruptcy – Chapter 7 requires 2 years have elapsed from time of discharge

- Chapter 13 requires 1 year after repayment has elapsed and in good standing

SOME KEY POINTS TO REMEMBER:

• The above statements are typical guidelines and do not guarantee any type of loan approval.
• All situations typically require re-established credit in some form (credit cards, installment debts)
• Extenuating circumstances DO NOT INCLUDE:

DIVORCE

INABILITY TO SELL A HOUSE DUE TO JOB RELOCATION

POOR FINANCIAL MIS-MANAGEMENT