'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)