When it comes to obtaining a new home loan, there are generally three major events that supersede all other items, when it comes to time frame to obtain a new home loan. Those events are a foreclosure, a short sale or a bankruptcy.
As we are often asked how long somehow has to wait to purchase a new home after one of these events, we present this updated cheat sheet for FHA loans.
FORECLOSURE: For a new home loan after a foreclosure, FHA loans normally require a three year waiting period from the final sale date of the foreclosure.
The one exception to this, is the FHA’s new back to work program, which we have discussed previously and allows potential home buyers, to purchase just twelve months after a foreclosure, if the loss of home was due to a loss of job or reduction in income and they have a new established job now.
SHORT SALE: For a new FHA home loan after a short sale or deed in lieu of foreclosure, the same three year waiting period applies. In addition, the same FHA back to work standards apply as well.
BANKRUPTCY: For a new FHA home loan, after a Bankruptcy, the waiting period is based on the type of bankruptcy that was filed. For a Chapter 7 bankruptcy, the waiting period is two years, after the discharge date. For a chapter 13 bankruptcy, the payments on the bankruptcy just have to have been made for twelve months and the new home loan must be approved by the court’s trustee. The FHA back to work, one year waiting period, also applies to bankruptcies as well.
As always, it is best to sit down with a licensed mortgage lender, such as Strategic Mortgage and fully qualify to see if you are ready to purchase a new home. However, this cheat sheet is a good guide to gauge basic eligibility after a major credit event.
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
Strategic Mortgage, LLC - - AZBK#090915 NMLS#158804 - Equal Housing Lender
Vasilios Bill Kamboukos Jr – NMLS#160440
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