Have you suffered a foreclosure, short sale, or bankruptcy? If any of these financial issues have plagued you in the past you might be wondering how long you have to wait before applying for a new mortgage or home loan. There are standards depending on the type of bankruptcy or foreclosure you had and waiting periods for each type of mortgage, however, amazing loan officers have unique programs and options that may be able to get you in a home sooner than these waiting periods, provided you have a steady income and a decent credit history. I know, after a bankruptcy or foreclosure it can be difficult to have a high credit score, but you might be surprised. You never know unless you ask. Here are some basic waiting periods that distressed borrowers might need to wait through if they've had a foreclosure, short sale, or bankruptcy on the record.
If you've had a bankruptcy, Fannie Mae and Freddie Mac have different options depending on the type of bankruptcy. Typically for Chapter 7, 11, or 13, it's between two and four years and if you had multiple bankruptcies it could be up to five years.
For FHA or USDA loan, it's typically 1 to 3 years depending on the type of bankruptcy and either the distressed state or the discharge date.
VA loans are typically the most lenient for any type of distressed financial issues and for bankruptcy, it's two years from the discharge date.
After a foreclosure or short sale, most conventional loans are seven years from the foreclosure date and three years for FHA or USDA. Again, the a mortgage is required just two years from the foreclosure date.
If you've had a short sale, it could be anywhere from 2 to 4 years depending on the type of loan you are going for.
Again, I can't stress enough that even if you're unsure of your credit history and report and you're still within these waiting periods, it certainly can't hurt you to call and ask about your options. Higher credit scores, especially for those that have maintained excellent payment history, low debt to income ratios, and a stable employment, may have better options. You never know unless you call. Please call our office today to find out if there are options available to you.