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 determine when you become eligible to apply. 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 | Chapter7 – 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 year from completion
No Seasoning if: • Borrower made all mortgagel 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 preeeding 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 1rom 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 applicants control and the circumstances have been removed and resolved lor 12 months prior to loan application;OR • The loan will significantly reduce or the applicants 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 on how these waiting periods work.
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