It seems as the majority of people I interact with have gone through some sort of financial crisis ranging from losing their home to a short sale, foreclosure or bankruptcy – all due to the changing economy and in many cases loss of income.

Many of these same people have re-establish themselves and are now back on “their feet” as the saying goes and want to purchase a home. The question asked by many:

How long before I can buy a house again?

Here is an overview of some of the guidelines for obtaining a mortgage after either a short sale, foreclosure or bankruptcy:

Conventional Loan Requirements:

Chapter 7 Bankruptcy 4 years from discharge date
Chapter 13 Bankruptcy 7 years from discharge date or 4 years from dismissal date
Foreclosure 5 years from completion date
Short Sale 5 years from completion date
Deed in Lieu of Foreclosure 5 years from completion date

FHA Loan Requirement

Chapter 7 Bankruptcy 2 years from discharge date
Chapter 13 Bankruptcy 1 year of the payout elapse time, and all payments must be satisfactory –
Foreclosure 3 years from completion date
Short Sale

No time restriction if the borrower was current on their mortgage payments

at the time of the short sale and all payments were made the previous 12 month

period and the proceeds from the short sale serve as payment in full, otherwise

3 years from completion date if in default at the time of the short sale

About Linda Urbick Linda

has written 247 articles on this blog.


Tagged with:

Filed under: Short Sales & Foreclosures

Like this post? Subscribe to my RSS feed and get loads more!