Lose your home to foreclosure, short sale, or bankruptcy? Credit trashed? How long will it take you to get off the ropes and back into the ring?
When will you be eligible to get a loan for a new house?
In the list below I’ll give you the simplified version, a snap shot. There are “extenuating circumstances” that can shorten the waiting periods, but I’m going to describe the maximum penalty period, your “standing eight count” before the referee let’s you back into the fight.
For Conventional Loans
Foreclosure 7 years
Short Sale 7 years with less than 10% downpayment
4 years with 10% down payment
2 years with 20% down payment
Bankruptcy (Chapter 7) 4 years
Bankruptcy (Chapter 13) 2 years from discharge
4 years from dismissal
For FHA Loans
Foreclosure 3 years
Short Sale 3 years with less than 10% downpaymt
Bankruptcy (Chapter 7) 2 years
Bankruptcy (Chapter 13) 1 year if all re-pay conditions are satisfactory
VA and USDA loan waiting periods are similar to FHA guidelines
Two conclusions can be drawn from this data:
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