How long do lenders require you to wait after a credit issue?

By
Real Estate Agent with RE/MAX Results

How Long Do I Have to Wait Before I Can Purchase Again?

The question concerning people who’ve had a foreclosure, short sale or bankruptcy is when they will be able to qualify for a mortgage loan.  It takes different amounts of time to heal credit scores based on the event.

The following chart is meant to be a general guide for how long a person might have to wait.  During this waiting period, it’s important that the person be current on all payments and maintains a history of good credit.

 

FHA

VA

USDA

FNMA/Freddie Mac

Jumbo

Foreclosure

3 years

2 years

3 years

7 years

7 years

Deed-in-Lieu of Foreclosure

3 years

2 years

3 years

2 years
<80%

4 years
81-90%

7 years
> 90%

7 years

Short Sale

3 years

2 years

3 years

2 years
<80%

7 years
81-90%

7 years
> 90%

7 years

Chapter 7 Bankruptcy

2 years

2 years

3 years

4 years

7 years

Chapter 13 Bankruptcy

1 year

1 year

1 year

2 years

7 years

A recommended lender can give you specific information regarding your individual situation and can make suggestions that will improve your ability to qualify for a mortgage.  We want to be your personal source of real estate information and we're committed to helping from purchase to sale and all the years in between.

Comments (2)

Tamara Schuster
Naperville Glen Ellyn Lisle Plainfield Wheaton Illinois - Naperville, IL
Realtor Broker - Naperville

This is good chart with guidelines to those who need them.


Great post to share.

Aug 14, 2012 12:55 PM
Laura Murray
Weichert - Silver Spring, MD
Search Montgomery Co., MD for homes www.MDRealEstateOnline.com

Nice chart.  This is becoming a big issue as folks consider strategic defaults.  Folks need to know that if they wish to purchase again in the near term, they need to not miss payments.

Aug 14, 2012 02:15 PM