Waiting Periods for Bankruptcies, Foreclosures, Etc.2017-11-28T00:37:53+00:00

Waiting Periods for Bankruptcies, Foreclosures, and Short Sales

Bankruptcy, Foreclosures, Short Sales, and Prior Loan Modifications. These are the facts about how long buyers must wait before obtaining financing.
Conventional
Foreclosure 7 years from date completed to the disbursement date of the new loan
Deed-in-Lieu of Foreclosure / Pre-Foreclosure or Short Sale 4 years from either the date of sale or from the completion date to the disbursement date of the new loan
Prior Loan Modification 2 years eligible with Fannie Mae DU approval
Chapter 13 Bankruptcy 2 years from discharge date
4 years from dismissal date
Chapter 7 Bankruptcy 4 years from discharge or dismissal date
Multiple Bankruptcy Filings in the Last 7 Years 5 years from last discharge or dismissal date
Jumbo Loan Follow requirements specific to the proposed loan product
FHA
Foreclosure / Deed-in-Lieu of Foreclosure 3 years from date completed and title transferred back to lender
Pre-Foreclosure or Short Sale 3 years from the date of title transfer to FHA case number assignment
Prior Loan Modification No wait period, but past 12 months’ credit history must have no late payments
Chapter 13 Bankruptcy 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage
No wait time if discharged or dismissed
Chapter 7 Bankruptcy 2 years from discharge or dismissal date
Consumer Credit Counseling 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage
VA
Foreclosure / Deed-in-Lieu of Foreclosure 2 years from date completed and title transferred back to lender
Pre-Foreclosure or Short Sale 2 years from credit approval date to date sale closed and title transferred to new owner
Prior Loan Modification Must have a 12-month satisfactory credit history after the event
Chapter 13 Bankruptcy 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage
No wait time if discharged or dismissed
Chapter 7 Bankruptcy 2 years from discharge or dismissal date
Consumer Credit Counseling 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage
USDA
Foreclosure / Deed-in-Lieu of Foreclosure 3 years from date completed and title transferred back to lender
Pre-Foreclosure or Short Sale 3 years from credit approval date to date sale closed and title transferred to new owner
Less than 3 years may be eligible if all mortgage and installment debt paid on time within the 12 months prior to the sale
Prior Loan Modification 3 years from modification completion date
Chapter 13 Bankruptcy 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage
No wait time if discharged or dismissed
Chapter 7 Bankruptcy 3 years from discharge or dismissal date
Consumer Credit Counseling 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage

Please Note: Shorter wait periods may be available under certain circumstances and depend on the reason for the derogatory credit event. Please refer to your Team 101 Loan Officer for details.

All Loan Types: If a mortgage loan has gone through a previous modification, or the lender offered a short payoff, it is NOT eligible for a refinance.

All mortgage products are subject to credit and property approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend.

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