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How Long Do I have to Wait to be qualified to get a Mortgage Loan

By
Real Estate Broker/Owner with Texas Five Star Realty, Plano Texas

How Long Do I have to Wait to be qualified to get a Mortgage Loan

   How Long Do I have to Wait to be qualified to get loans
 

1.      Derogatory events such Foreclosures, Short Sales, Deed in Lieu of and Bankruptcy will have a major negative impact on your credit score and usually decreases your credit score about 200-300 Points. Depending on how old they are and what you have done to establish a good credit since then, you may or may not be qualify for a mortgage loan. To find out about your specific situation; what do you need to do and/or how long do you have to wait to qualify for a mortgage loan, talk to your favorite lender.

Table below answers the question concerning people who have had a foreclosure, short sale or bankruptcy is when they will be able to qualify for a mortgage loan.

Waiting Period

Derogatory Event

FHA*

CONV**

va***

Bankruptcy - Chapter 7

2Yrs

4Yrs

2 Yrs

Bankruptcy - Chapter 1 3

1 Yr

2 or 4Yrs**

1Yr

Foreclosure

3Yrs

7Yrs

2 Yrs

Deed In Lieu Of Foreclosure/Short  Sale

3Yrs

2 Yrs - 80% LTV
4 Yrs - 90% LTV

2 Yrs

*http://www.fha.com **https://www.efanniemae.com***http://www.veteranloancenter.com

During Waiting Period:

No more than 2 installment or revolving debt payments 30 days past due in last 24 months.

No installment or revolving debt payments 60 or more days past due since the discharge/completion date of BK.

No housing debt payments past due since discharge/completion of BK.

No new public records BK, foreclosure, deeds-in-lieu, unpaid judgements/collections, garnishments, liens since discharge/completion of BK.

  Evident that borrower's credit history does not contain multiple revolving accounts with high balances to limits or high overall
utilization of revolving credit.

 

To find out more about your credit score and how to get a free copy of your credit reports, or find out about credit scores in general and tips on how to improve your credit score, please visit one of the appropriate sites from following:

What is a credit score,

What makes up a credit score, Tips on how to improve their credit score,

What impact they have on your Interest rates & why they are important,

List of Do’s and Don’ts they should do before applying a mortgage loan, and

List of Do’s and Don’ts after being approved for a mortgage loan.

 

           Contact us about your Credit Score Questions

Contact us about your Credit Score Questions