How Long After Foreclosure Can I Buy Again?

At the beginning and during the last recession many people lost their homes to foreclosure.  Now as we begin to come out of the recession, there are many people who are ready for homeownership again.  And many may be qualified to buy NOW and they don't even realize it!

Here is a list of the waiting periods for the different types of available loans.

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 you think a client may be eligible, please ask them to give me a call. I would be more than happy to pre-qualify them or create a Home Loan Action Program that brings them closer to buying their dream home.