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QUESTION: How do I decide whether to buy or rent?
August 11, 2018

QUESTION: How long must I wait after a bankruptcy or foreclosure to apply for a new loan?

Answer:

The following list of scenarios shows you what you can expect if you have to enter one of these programs after a foreclosure, short sale, bankruptcy chapter 7 or 13:

Specialized Loan Programs:

  • There are loan programs with specified criteria, that will allow buyers to purchase or refinance of a home even if you are only (1) day past a foreclosure, short sale, or bankruptcy chapter 7 or 13.

Freddie Mac:

  • FORECLOSURE:
    7 Years from date of completion.
  • SHORT SALE Deed in Lieu:
    4 Years from date of completion of short sale. 4 Years from date of completion of deed in lieu.
  • CHAPTER 7 BANKRUPTCY:
    4 Years from date of dismissal or discharge.
  • CHAPTER 13 BANKRUPTCY:
    2 Years from date of discharge. 4 Years from date of dismissal.

Fannie Mae:

  • FORECLOSURE:
    7 Years from date of completion.
  • SHORT SALE Deed in Lieu:
    4 Years from date of completion of short sale. 4 Years from date of completion of deed in lieu.
  • CHAPTER 7 BANKRUPTCY:
    4 Years from date of dismissal or discharge.
  • CHAPTER 13 BANKRUPTCY:
    2 Years from date of discharge. 4 Years from date of dismissal.

FHA:

  • FORECLOSURE:
    3 Years from date claim was paid.
  • SHORT SALE Deed in Lieu:
    3 Years from date claim was paid.
  • CHAPTER 7 BANKRUPTCY:
    2 Years from date of discharge and must have reestablished good credit.
  • CHAPTER 13 BANKRUPTCY:
    2 Years from date of discharge and must have reestablished good credit.

VA:

  • FORECLOSURE:
    2 Years from date of completion.
  • SHORT SALE Deed in Lieu:
    No specific information available.
  • CHAPTER 7 BANKRUPTCY:
    2 Years from date of discharge.
  • CHAPTER 13 BANKRUPTCY:
    1 Year of the payout must elapse and payment performance must be satisfactory; buyer may enter into a mortgage only with permission from court.

USDA RURAL:

  • FORECLOSURE:
    3 Years from date of completion.
  • SHORT SALE Deed in Lieu:
    3 Years from Date of Completion with satisfactory 12-month housing payment history.
  • CHAPTER 7 BANKRUPTCY:
    3 Years from date of discharge.
  • CHAPTER 13 BANKRUPTCY:
    1 Year of the payout must elapse and payment performance must be satisfactory; buyer may enter into a mortgage only with permission from court.

JUMBO:

  • Each Scenario is based on specific investor guidelines.

For a FREE Consultation to answer any further questions you may have and to discuss a solution to your unique situation, CLICK HERE to schedule a call with one of our lending experts.