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How Long Does a Buyer Need to Wait After a
Bankruptcy, Foreclosure or Short-Sale Before Obtaining Financing?
In this economy, we hear this question often.
Below is a summary of the waiting period to obtain financing post Bankruptcy,
Foreclosure or Short Sale.
CONVENTIONAL
- Ch. 7 BK: 4 years from
discharge date
- Ch. 13 BK: 2 years from
discharge date (or 4 years from dismissal date)
- Foreclosure: 7 years
from completion
- Deed-In-Lieu, Short
Sale: 2 years from completion date 80% max LTV, 4 years 90% LTV, 7 years
standard max LTV
FHA
- Ch. 7 BK: 2 years from
discharge date
- Ch. 13 BK: 1 year of
the payout must elapse and payment performance must be satisfactory (buyer must
have permission of court)
- Foreclosure or
Dee-In-Lieu: 3 years from completion date
- Short Sale: No time
restriction from completion date if the borrower was current at the time of
short sale and all mortgage and installment payments were made within the month
due for the previous 12 month period prior to application date
VA
- Ch. 7 BK: 2 years from
discharge date
- Ch. 13 BK: 1 year of
the payout must elapse and payment performance must be satisfactory (buyer must
have permission of court)
- Foreclosure: 2 years
from completion date
- Short Sale: No
information given, assume 2 years from completion date
USDA - RURAL
- Ch. 7 and Ch. 13 BK: 3
years from discharge date
- Foreclosure: 3 years
from completion date
- Short Sale: No
information given, assume 2 years from completion date
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