When it comes to purchasing a new home, after the foreclosure of a previous home, there are generally standard waiting periods for each of the major home loan programs. In this article we discuss common waiting periods to purchase a new home after a previous foreclosure or bankruptcy.
On an FHA loan, there is generally a three year waiting period after a foreclosure or short sale (though this can be reduced to one year with the FHA back to work program). In addition, the FHA will allow you to purchase a new home just two years after the discharge of a chapter 7 bankruptcy.
On a VA (Veterans Administration) home loan, the general waiting period is only two years after a foreclosure or short sale. The VA program is truly one of the best programs available for home loans, but is only available to qualified active duty Military and National Guard and veterans of the armed services. In addition, the VA will allow you to purchase a new home just two years after the discharge of a Chapter 7 Bankruptcy.
Finally, on a conventional home loan, short sales and foreclosures have traditionally been looked at differently. On a Foreclosure, the waiting period is seven years to obtain a new conventional loan, regardless of down payment.
However, after a short sale, you may obtain a new Conventional loan after four years. In addition, on a conventional loan, you will have to wait until four years after the discharge of a chapter 7 bankruptcy to be able to obtain a new home loan.
This wraps up a summary of the major loan program waiting periods to purchase a new home after a foreclosure, short sale or bankruptcy.
As always, it makes sense to speak with a licensed lender, such as Strategic Mortgage, to fully evaluate your specific situation and all of the home loan options available to you.
For more information on current home loan programs and options for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com
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