Waiting Periods For Financing

Foreclosure (Photo credit: Edward354)


As we come out of recession, many people may be qualified to buy now and they don’t even know it! Here is a list of waiting periods.


Conventional Loans:

  • Chapter 7 BK – 4 year waiting period from the discharge/dismissal date
  • Chapter 13 BK – 2 year waiting period from the discharge date or 4 years from the dismissal date
  • Multiple Bankruptcies – If there are multiple bankruptcies within a 7 year period, the waiting period is 5 years from the most recent discharge/dismissal date
  • Foreclosure – 7 year waiting period from the completion date
  • Deed-In-Lieu/Pre-Foreclosure Sale (Short Sale) – Minimum 2 year waiting period

FHA/VA Loans:

  • Chapter 7 BK – 2 year waiting period from the discharge/dismissal date
  • Chapter 13 BK – 1 year of the payout must have elapsed and the borrower’s performance must have been paid as agreed. Document that the borrower’s current situation is not likely to recur. The court must grant permission to the borrower to enter into a mortgage transaction.
  • FHA Foreclosure/Pre-Foreclosure/Short Sale – 3 year waiting period.
  • VA Foreclosure/Pre-Foreclosure/Short Sale – 2 year waiting period for Foreclosures.

Borrowers who lost their homes as a result of a direct hardship may be able to get an FHA loan in as little as one year. If your in one of these groups, give me a call I might be able to help you get into a new home.



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