Korene's Blog

The Waiting Guidelines for Bankruptcy, Foreclosure, Short Sales; Deed in Lieu of Foreclosure

November 2nd, 2011 4:55 PM by Korene L Clopine-Seaman

FHA Waiting Guidelines

 Bankruptcy – You may apply for a FHA insured loan after your bankruptcy has been discharged for TWO (2) years with a Chapter 7 Bankruptcy.

 You may apply for a FHA insured loan after your bankruptcy has been discharged for ONE (1) year with a Chapter 13 Bankruptcy

 Foreclosure - You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date.

 Short Sale / Notice of Default – You may apply for a FHA insured loan THREE (3) years after the sale date of your foreclosure. FHA treats a short sale the same as a Foreclosure for now.

 Credit must be re-established with a 640 minimum credit score

 

VA Waiting Guidelines

 Bankruptcy - You may apply for a VA guaranteed loan TWO (2) years after a Bankruptcy is discharged.

 Foreclosure - You may apply for a VA guaranteed loan TWO (2) years after a foreclosure

 Short Sale - You may apply for a VA guaranteed loan TWO (2) after a short sale, unless it was a VA loan then restrictions apply

 Credit must be re-established with a minimum 620 credit score

 

 Conventional Waiting Guidelines (Fannie Mae)

 Bankruptcy – You may apply for a Conventional, Fannie Mae loan after your bankruptcy has been discharged for FOUR (4) years.

 Foreclosure - You may apply for a Conventional, Fannie Mae loan SEVEN (7) years after the sale date of your foreclosure. Additional qualifying requirements may apply,

 Short Sale / Notice of Default – Currently treated the same as a foreclosure with a waiting time of SEVEN (7) years before you can buy again using a Fannie Mae conventional home loan.  Credit must be re-established with a minimum 660 credit score.

 Fannie Mae has reduced waiting periods in cases of extenuating circumstances – down to 2 years with larger down payments.

 

Posted in:General
Posted by Korene L Clopine-Seaman on November 2nd, 2011 4:55 PM

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