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Buying a Home After Bankruptcy

Below is general information regarding mortgage lending after bankruptcy, foreclosure and short sales. This is for informational purposes only and results may vary depending on the particular lender.

Foreclosure Short-Sale

Deed-In-Lieu

Chapter 7 Bankruptcy Chapter 13 Bankruptcy
 

Freddie Mac

●  7 years from the date of completion ●  4 years from completion of short sale

●  4 years from completion date – Deed-In-Lieu

●  4 years from date of dismissal or discharge

●  2 years with extenuating circumstance

●  2 years from date of discharge

●  4 years from date of dismissal

 

Fannie Mae

●  7 years from the date of completion ●  4 years – Standard Waiting Period

●  2 years – Extenuating circumstances waiting period

●  4 years from date of dismissal or discharge

●  2 years with extenuating circumstance

●  2 years from date of discharge

●  4 years from date of dismissal

 

FHA

●  3 years from the date of completion ●  3 years from the date of completion UNLESS borrower has been current on their mortgage payments for the previous 12 months and they did not pursue a short sale simply to take advantage of declining market. Under these circumstances, they can purchase immediately. ●  2 years from date of discharge

●  1 year with extenuating circumstance

●  2 years (trustee has to approve the new debt and one year of the pay-out period under the bankruptcy has elapsed)

●  1 year – extenuating circumstances waiting period

 

 

VA

●  Upon re-establishing good credit history with extenuating circumstance ●  Upon re-establishing good credit history with extenuating circumstances ●  2 years from date of discharge – standard waiting period

●  1 year – extenuating circumstances waiting period

●  2 years (trustee has to approve the new debt)

●  1 year – extenuating circumstances waiting period

 

USDA Rural Housing

●  3 years from the date of completion ●  3 years from date of discharge ●  12 month on time pay history and approval from the trustee to incur new debt.
Extenuating circumstances may reduce the waiting periods above. Extenuating circumstances are nonrecurring events that are beyond the borrower’s control. Contact your loan originator to discuss your particular situation. Information may be subject to change.