How Long Do I have to Wait

Waiting has never been my strong suit.  I screwed the pooch, ended up in a foreclosure, bankruptcy or short sale.  I didn’t want to end up there, but, I did.  How long do I have to wait before purchasing a new property?

These waiting periods may affect when you become eligible for a new loan under the applicable program guidelines. They are not a guarantee of approval — lenders also review credit, income, assets and the property itself, and individual lender requirements vary. All loans are subject to credit approval.

Waiting Periods by Loan Type: Foreclosure, Bankruptcy, and Short Sale

	Foreclosure	Bankruptcy	Short Sale
Conventional	7 years from completion	Chapter 7 – 4 Years from Discharge/Dismissal Chapter 13 – 2 years from discharge 4 years from dismissal	4 years from the completion
FHA	3 years from completion date; FHA pays the initial claim and clears the CAIVRS	Chapter 7 – 2 Years from Discharge Chapter 13 – 1 year of payment period must have elapsed with satisfactory payment performance and permission from the court	3 years from completion No Seasoning if: • Borrower made all mortgage installment payments within the month due for the 12 mos. prior to the short sale AND • Made all mortgage/installment payments within the month due for the 12-mo period preceding the date of the loan app for the new mortgage
VA	2 years from the completion	Chapter 7 – 2 Years from Discharge Chapter 13 – 1 year of payment period must have elapsed with satisfactory payment performance and permission from the court	2 years from the completion
USDA	3 years from the completion	Chapter 7 – 3 Years from Discharge Chapter 13 – 1 year of payment period must have elapsed with satisfactory payment performance and permission from the court	3 years from completion Exception to Seasoning • The circumstances that caused the credit problems were temporary in nature, beyond the applicant’s control and the circumstances have been removed and resolved for 12 months prior to loan application; OR • The loan will significantly reduce the applicant’s housing expenses, which will result in improved debt repayment ability

These are general program guidelines only; individual lenders may apply stricter requirements. The CFPB has more information about foreclosure waiting periods.