How Soon Can I Buy?

Waiting Periods for Foreclosure, BK, and Shortsale:

Answer for Fannie Mae:

Foreclosure:  7 years

Short Sale:     4 years
BK:                  4 years from discharge

  

Answer for Freddie Mac:

Foreclosure:   7 years

Short Sales:    not allowed

BK:                   4 years

  

Answer for FHA:

Foreclosure:          3 years

Chapter  7 BK:       2 years from discharge

Chapter 13 BK:      1 year from payout period

Consumer Credit:  1 year from payout period

Short Sale:             Not eligible if pursued on principal residence simply to take advantage of declining market & purchase a similar or superior property 

Answer for VA:

Foreclosure:          2 years

Chapter  7 BK:       2 years from discharge

Chapter 13 BK:      1 year from payout period

Consumer Credit: 1 year from payout period

Short Sale:              2  years

Answer for USDA:

Foreclosure:          3  years

Chapter  7 BK:       3 years  from discharge

Chapter 13 BK:      3 year from payout period

Short Sale:              3 years

'When can I start the loan process after a derogatory event?'

Below please find some helpful guidance on what can be done in the loan process after a short sale (SS) or foreclosure (FC).

FHA
Measure by recording date of SS/FC to the date of the new note/case number: 3 years

When can I start? Nothing can start before the case number is ordered, which cannot occur until the 3 years seasoning has passed. Since a case number cannot be ordered without an application, neither can the application be taken prior to the seasoning met.

VA
Measure by recording date of SS/FC to the date of the new note: 2 years

When can I start? Nothing can start before the date of the initial application.

FNMA
Measure by recording date of SS/FC to the date of the new note : 4 Years for SS/ 7 years for FC

When can I start? Contract can be signed/ loan can be locked/ application and credit can be taken before the waiting period is up- cannot draw the loan before the seasoning period has elapsed.

FREDDIE MAC

Measure by Recording date of SS/FC to the date of the initial application = 7 years for FC. SS allowed if we get an Accept/ eligible.

When can I start? LPA evaluates Significant Derogatory Credit (SS/FC)- if LPA issues an 'Accept/eligible', the seasoning is deemed to have been met and the transaction can move forward.

USDA
Measure from the date of the short sale or foreclosure to the loan application- 3 years.

When can I start? Only the contract can be signed prior to the three year seasoning (No credit pulled prior 3 year seasoning)