Waiting periods to Re-Apply for Home Mortgage Loans

By
Real Estate Agent with HomeSmart Real Estate BR632450000

After a foreclosure, a home buyer must wait 3 years to reapply for a FHA mortgage loan while they must wait 7 years on a conventional loan. A buyer has to wait 2 years to reapply while using a VA loan. Similarly, there are different mortgage loan waiting periods for home buyers coming out of a bankruptcy or short sale.

Waiting periods to reapply for a mortgage loan

   

Families raising a family are looking forward to the day when they can buy their own home. How long does one have to wait after a significant event like bankruptcy, foreclosure, short sale, loan modifications etc to qualify for different types of mortgage loans?

 

Here is an excellent summary prepared by Tyson Barry of Academy Mortgage.

 

Conventional
Foreclosure 7 years from date completed to the disbursement date of the new loan
Deed-in-Lieu of Foreclosure

Pre-Foreclosure or Short Sale

4 years from either the date of sale or from the completion date to the disbursement date of the new loan
Prior Loan Modification 2 years eligible with Fannie Mae DU approval
Chapter 13 Bankruptcy 2 years from discharge date 
4 years from dismissal date
Chapter 7 Bankruptcy 4 years from discharge or dismissal date
Multiple Bankruptcy Filings in the Last 7 Years 5 years from last discharge or dismissal date
Jumbo Loan Follow requirements specific to the proposed loan product

 

VA
Foreclosure 
Deed-in-Lieu of Foreclosure 
2 years from date completed and title transferred back to lender
Pre-Foreclosure or Short Sale 2 years from credit approval date to date sale closed and title transferred to new owner
Prior Loan Modification Must have a 12-month satisfactory credit history after the event
Chapter 13 Bankruptcy 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage 
No wait time if discharged or dismissed
Chapter 7 Bankruptcy 2 years from discharge or dismissal date
Consumer Credit Counseling 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage

 

FHA
Foreclosure

Deed-in-Lieu of Foreclosure

3 years from date completed and title transferred back to lender
Pre-Foreclosure or Short Sale

3 years from the date of title transfer to FHA case number assignment

Prior Loan Modification No wait period, but past 12 months’ credit history must have no late payments
Chapter 13 Bankruptcy 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage 
No wait time if discharged or dismissed
Chapter 7 Bankruptcy 2 years from discharge or dismissal date
Consumer Credit Counseling 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage

 

USDA
Foreclosure

Deed-in-Lieu of Foreclosure

3 years from date completed and title transferred back to lender
Pre-Foreclosure or Short Sale 3 years from credit approval date to date sale closed and title transferred to new owner 
Less than 3 years may be eligible if all mortgage and installment debt paid on time within the 12 months prior to the sale
Prior Loan Modification 3 years from modification completion date
Chapter 13 Bankruptcy 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage 
No wait time if discharged or dismissed
Chapter 7 Bankruptcy 3 years from discharge or dismissal date
Consumer Credit Counseling 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage

 

When you are ready to buy ask about free home buyer grants  available in Arizona, or check your own state for similar local programs. These grants do not have to be repaid and can be applied to a buyer's down payment and/or closing costs. Ready to move? See Arizona homes for sale or Scottsdale homes for sale.

Posted by

Jeffrey Masich, Associate Broker, REALTOR®, MBA, GRI, BS Accounting

HomeSmart

Scottsdale, Arizona

JeffMasich@ArizonaHomesLand.com

http://ArizonaHomesLand.com

480-242-6500

 

 

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Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI

Arizona Homes and Land Group/ Buy or Sell
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