Our Real Estate Blog

How long does my client have to wait after a foreclosure or bankruptcy to purchase a home?

June 1st, 2010 8:59 AM by Lehel S.

Given the current economic climate, more consumers are dealing with credit concerns.  I am often asked, “How long does my client have to wait after a foreclosure or bankruptcy to purchase a home?”  The answer depends on the type of financing they will be using to purchase.
 
     FHA Loans:
          Foreclosure – 3 years
          Short Sale – 3 years
          Chapter 7 Bankruptcy – 2 years past discharge
          Chapter 13 Bankruptcy – paid in at least 12 months into payment plan and court permission
    
     Conventional Loans:
          Foreclosure – 5 to 7 years
          Short Sale without late payments – 2 years
          Short Sales with late payments – 4 years
          Deed in Lieu with mortgage late payments – 4 years
          Bankruptcy (Chapter 7 and 13) – 4 years
 
If your clients have been through a foreclosure, bankruptcy, or short sale, and are looking to purchase, be mindful of these dates, as they are standards set by HUD and Fannie Mae.  It is also pertinent to note that short sales often report on a credit report like a foreclosure.  The advantage of a short sale is the shorter waiting period to purchase again.  If you have any questions, feel free to give me a call. 
 
Did you know?  Memorial Day used to be called Decoration Day until it was changed in 1882.
Posted in:General
Posted by Lehel S. on June 1st, 2010 8:59 AM

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