How long to wait for, after bankruptcy, foreclosure or short sales, before requalifying for a new loan
Ever wondered how long you have to wait after a bankruptcy, foreclosure, or short sale before being able to qualify for a new mortgage? Check out the table
below for all the answers. You can also view our list of established lenders at our website by clicking on Colorado Lenders, to call real people for real answers.
|
Type of Derogatory Credit |
Type of Loan |
Waiting Period |
Notes |
| Chapter 7 Bankruptcy | Conventional | 4 years from discharge date | 2 years with extenuating circumstances |
| FHA | 2 years from discharge date | 1 year with extenuating circumstances | |
| VA | 2 years from discharge date | 1 year with extenuating circumstances | |
| Chapter 13 Bankruptcy | Conventional | 2 years from discharge date | Discharge = payments made on time |
| 4 years from dismissal date | Dismissal = payments not made on time; 2 years with extenuating circumstances | ||
| FHA | 1 year of payment period must elapse | Needs approval of the court; all payments made on time | |
| VA | 1 year of payment period must elapse | Needs approval of the court; all payments made on time | |
| Foreclosure | Conventional | 7 years from recording date of Public Trustee’s Deed | 3 years with extenuating circumstances; minimum 10% down; primary residences only |
| FHA | 3 years from recording date of Public Trustee’s Deed | Exceptions allowed for extenuating circumstances | |
| VA | 2 years from recording date of Public Trustee’s Deed | 1 year with extenuating circumstances | |
| Short Sale | Conventional | 2 years from completion date | Requires 20% down |
| 4 years | Requires 10% down | ||
| 7 years | Less than 10% down | ||
| FHA | No waiting period if the borrower was current on mortgage payment | No late payments allowed forthe 12 months prior to the loan application date | |
| 3 years if the borrower was in default | Exceptions allowed for extenuating circumstances | ||
| VA | No specific policy | Most lenders follow FHA guidelines | |
NOTE: For all loans, the borrower must have “re-established credit” after the bankruptcy, foreclosure, or short sale. That means NO late payments of any kind for 12 months, just to begin with.
You can print out a portion of this table at How long you have to wait after a bankruptcy or foreclosure, or give me a call at 303-888-2488, or email me at mcgmhg@earthlink.net and we can guide you to some very well qualified lenders, from our list above. This is not a perfect table, and everyone’s situation is different, this is just an example to guide you on reestablishing credit, and on your way to buying your next home.
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