Here is a quick cheat sheet on waiting periods after a Bankruptcy, Foreclosure, Short-Sale, or Deed in Liu.
These numbers do tend to change quite often, so always consult your lender before making any assumptions.
Even if you do not qualify for a government-backed loan, you can always try a Non-QM (Non-Qualifying) loan. Some of these programs accept 1 day out of BK, so check with your loan officer or broker or if you live in Florida, you can contact us.
|Short Sale / Deed in Lieu||Foreclosure||Bankruptcy Ch 7||Bankruptcy Ch 13|
|Conventional Mortgage||4 Years||7 Years from completion date||4 years after discharge date||2 Years after discharge date|
|FHA Mortgage||Permitted with mortgage history 0x30 for 12 months prior to short sale, 3 years if in default.||3 Years from completion date||2 years after discharge date||Buyer needs permission from court|
|VA Mortgage||Permitted with mortgage history 0x30 for 12 months prior to short sale, 2 years if in default.||2 years per AUS findings with an exception; 3 years from completion with AUS Refer||2 years after discharge date||Buyer needs permission from court|
|USDA Mortgage||3 Years from completion date||3 Years from completion date||3 years after discharge date||Buyer needs permission from court|
Key points to look out for
Discharge date is not filing date
The valid date you start counting from for a Bankruptcy is the date that the judge signed the discharge, not when you submitted your paperwork.
The completion date for a Short Sale is the date that the bank took legal hold of the property, so check public records and check the date that the deed was actually registered.
Some banks have registered deeds years after people handed the property over to them.
There are exceptions to these timelines
Many of these waiting periods have exceptions, but you need to have a very good reason for them to be waived. Usually, things like sickness, divorce, and other life-changing events might qualify. So if in doubt, ask a loan officer.
These waiting periods change over time
Washington DC is constantly dishing out new laws, so just because you read it here does not mean it is still valid, so regardless of what you might be reading online, if in doubt just ask your lender.