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:

• It is quicker to get back into the game after a short sale than after a foreclosure.
• FHA is more forgiving than conventional lenders.