Updated 3/27/2015
FHA Guidelines
- Chapter 7 Bankruptcy – You may apply for a FHA insured loan after your bankruptcy has been discharged for TWO (2) years.
- Chapter 13 Bankruptcy – You may apply for a FHA insured loan after 1 year of payout and satisfactory payout performance. Buyer must receive permission from the court to enter into a new mortgage.
- Foreclosure - You may apply for a FHA insured loan THREE (3) years after the Public Trustee’s Deed recording date.
- Short Sale / Deed in Lieu – You may apply for a FHA insured loan THREE (3) years after the sale date of your foreclosure. (Can re-enter market if short sale is sold with NO mortgage delinquencies and was NOT an FHA mortgage.)
VA Guidelines
- Chapter 7 Bankruptcy – You may apply for a FHA insured loan after your bankruptcy has been discharged for TWO (2) years.
- Chapter 13 Bankruptcy – You may apply for a FHA insured loan after 1 year of payout and satisfactory payout performance. Buyer must receive permission from the court to enter into a new mortgage.
- Foreclosure – You may apply for a VA insured loan TWO (2) years after the Public Trustee’s Deed recording date.
- Short Sale / Deed in Lieu – No timeframe with AUS approval. (Can re-enter market if short sale is sold with NO mortgage delinquencies.)
USDA Guidelines
- Chapter 7 Bankruptcy – You may apply for a USDA loan THREE (3) years after the discharge of a Chapter 7.
- Chapter 13 Bankruptcy – You may apply for a USDA loan ONE (1) year after the completion date.
- Foreclosure – You may apply for a USDA loan THREE (3) years after the Public Trustee’s Deed recording date.
- Short Sale / Deed in Lieu of Foreclosure – Case-by-case depending if credit score is above 640. Typically not less than ONE (1) year. In the clear THREE (3) years after the Public Trustee’s Deed recording date.
**Some special circumstances and exceptions with USDA loans apply**
Conventional (Fannie Mae)
- Chapter 7 Bankruptcy – You may apply for a Conventional, Fannie Mae loan after your bankruptcy has been discharged for FOUR (4) years,
- Chapter 13 Bankruptcy – You may apply for a Conventional, Fannie Mae loan TWO (2) years after the Discharge Date and FOUR (4) years from the Dismissal Date.
- Foreclosure - You may apply for a Conventional, Fannie Mae loan SEVEN (7) years after the Public Trustee’s Deed recording date.
- Short Sale / Deed in Lieu of Foreclosure - You may apply for a conventional mortgage FOUR (4) Years after the Public Trustee’s Deed recording date with a maximum 95% LTV on your new loan. TWO (2) Years may be possible with documented extenuating circumstances out of your control.
These are general guidance and are not a commitment to lend. Always check with your mortgage broker as regulations change often.
If you are ready to re-purchase again. Contact us and we can point you to a qualified mortgage broker in your area.
