Waiting Period to obtain financing post a BK, Foreclosure or Short Sale.
This is a frequent question these days.
Below is a summary by loan type of the Waiting Period to obtain
financing post a BK, Foreclosure or Short Sale.
CONVENTIONAL
• Chapter 7 Bankruptcy — 4 years from discharge date.
• Chapter 13 Bankruptcy — 2 years from discharge date.
• Foreclosure — 7 years from completion date.
• Deed-In-Lieu of Foreclosure— 2 years from completion date 20% down 2 years from completion date.
• Short Sale — 2 years from discharge date.
FHA
• Chapter 7 Bankruptcy — 2 years from discharge date.
• Chapter 13 Bankruptcy — 1 year of the payout must elapse & payment performance must be satisfactory - buyer must receive permission from the court to enter into a mortgage.
• Foreclosure — 3 years from completion date.
• Short Sale — 1 year from completion date If the borrower was current at the time of the short sale and all installment payments for a 12 month period.
— 3 years from completion date if in default at time of short sale.
VA
• Chapter 7 & 13 Bankruptcy —2 years from discharge date.
• Foreclosure —1 year of the payout must elapse & payment performance must be satisfactory- buyer must receive permission from the court to enter into a mortgage.
• Chapter 13 Bankruptcy —2 years from completion date.
• Short Sale —No specific information on this yet, assume foreclosure rule of 3 years.
USDA Rural
• Bankruptcy (Ch 7 & 13) —3 years from discharge date.
• Foreclosure —3 years from completion date.
• Short Sale —No specific information on this yet, assume foreclosure rule of 3 years.
