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Did You Have A Short Sale Or Foreclosure Or A Bankruptcy
Wow its May 2016....Can you believe it? 2016 is almost half done! Are you getting ready for another HOT Arizona summer?? Dreaming of having a pool? Well you can really make your dreams reality!! NO I am not kidding, EVEN if you have had a bankruptcy, Foreclosure, or a short sale.
2016 FHA 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 / Deed in Lieu – 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 no late payments in past 12-24 months, depending on hardship
2016 VA GUIDELINES
Bankruptcy Ch 7 – You may apply for a VA guaranteed loan TWO (2) years after a chapter 7 Bankruptcy
Bankruptcy Ch 13 – If you have finished making all payments satisfactorily, the lender may conclude that you have reestablished satisfactory credit.
If you have satisfactorily made at least 12 months worth of the payments and the Trustee or the Bankruptcy Judge approves of the new credit, the lender may give favorable consideration.
Foreclosure / Deed in Lieu – You may apply for a VA guaranteed loan TWO (2) years after a foreclosure
Short Sale – VA does not recognize a short sale as a derogatory event. If you are able to credit qualify for a VA loan, a short sale would not prevent you from being eligible for VA financing. – Updated 4/2016
Credit must be re-established with a minimum 620 credit score
2016 USDA GUIDELINES
Bankruptcy – You may apply for a USDA rural loan THREE (3) years after the discharge of a Chapter 7 or 13 Bankruptcy – Buy Again After Bankruptcy Using A USDA Loan
Foreclosure – You may apply for a USDA rural loan THREE (3) years after a Foreclosure – Buy Again After Foreclosure Using A USDA Loan
Short Sale / Deed in Lieu of Foreclosure – If you had big issues the deed in lieu of foreclosure will be viewed as a foreclosure and you would want to wait no less than 3 years if the score is under 640. Over 640 your UW will make the call but typically not less than one year. Buy Again After Short Sale / Deed In Lieu using a USDA Loan
UPDATED 12/2014 – Mortgage debt included in Bankruptcy will go by BK discharge date, and and subsequent foreclosure will not count as an additional waiting period, as long as you are off title for any defaulted mortgages.
Link to 12/1/2014 USDA Guideline – HB-1-3555 Attachment 10-B See Page 4 of 6
2016 CONVENTIONAL (FANNIE MAE) GUIDELINES
Bankruptcy – You may apply for a Conventional, Fannie Mae loan after your Chapter 7 bankruptcy has been discharged for FOUR (4) years, TWO (2) years from the discharge of a Chapter 13
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 / Deed in Lieu of Foreclosure –
UPDATED – Effective 7/29/2014: Waiting period for subsequent foreclosure that was included in Bankruptcy is waived. If mortgage is included in Bankruptcy, waiting period defaults to FOUR (4) from the discharge date.
UPDATED – Effective 8/16/2014: Short Sale or Deed in Lieu of Foreclosure not included in a Bankruptcy has a new Waiting Period of FOUR (4) years from date your name is removed from title. This replaces the ability to buy in 24 months with 20% down payment and minimum 680 credit score.
SEVEN (7) Years above 90% Loan to Value | with less than 10% Down Payment – Subject to Private Mortgage Insurance underwriting guidelines.
Credit must be re-established with a minimum 620 credit score.
Hope this information is helpful!!
Information from: http://www.findmywayhome.com/home-mortgage-news/boomerang-buyers/how-long-do-i-have-to-wait-after-a-bankruptcy-short-sale-or-foreclosure/