I get asked this question at least once a week. I also get asked what if I short sale my home or let it go to foreclosure, then how long do I have to wait? The answer is simple yet complex. First off it depends on the type of bankruptcy, 7 or 13. It also depends on if there were any extenuating circumstances.
Conventional, chapter 7 you must wait at least 4 years and as much as 7. If there was a deed in lieu or a forclosure it will most likely be 7 years from transfer date.
FHA, chapter 7 you must wait for 2 years from discharge, and if there was a short sale or deed in lieu then 3 years.
VA, chaper 7 you must wait for 2 years from the discharge and if there was a short sale then it is still 2 years.
USDA, chapter 7 you must wait for 3 years from the discharge date. If there was a short or deed in lieu then it is still 3 years.
Of course there are always credit score requirements and some investors may have overlays, so contact your lender to find out what they are and keep educated for your clients.
Jerry Wright MLO 181458
425-238-2095
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