You Can Buy Again

It can take quite a while to recover from negative financial events like a bankruptcy and get your life back in order. Part of the high buyer demand in real estate right now is a result of those homeowners who went through a short sale or foreclosure during the recession now returning to the market, often called "boomerang buyers." If you had financial trouble in the past and are wondering when you might be able to qualify for a mortgage loan again, below are some general guidelines to help you plan.

Conventional / Fannie Mae

• Chapter 7 Bankruptcy - 4 year seasoning required from the discharge or dismissal date to the lender's credit report date.
• Chapter 13 Bankruptcy - 2 years from discharge date of 4 years after dismissal date to the lender's credit report date.
• Foreclosure - 7 year seasoning required from the completion date to the disbursement date of the new loan.
• Deed-in-lieu of Foreclosure - 4 year seasoning required from the completion date to the disbursement date of the new loan.
• Short Sale - 2 year seasoning required from the completion date to the disbursement of the new loan.

FHA

• Chapter 7 Bankruptcy - 2 year seasoning required from discharge date to loan application date.
• Chapter 13 Bankruptcy - Minimum 1 year timely payout according to the repayment plan at time of application along with trustee permission letter for new mortgage.
• Foreclosure, Deed-in-lieu of Foreclosure, Pre-foreclosure, Short Sale - 3 year seasoning required from foreclosure end date to loan approval date.

VA

• Chapter 7 Bankruptcy - 2 year seasoning from date of discharge.
• Chapter 13 Bankruptcy - Minimum 1 year timely payout required according to the replayment plan at time of application along with trustee permission letter for new mortgage.
• Deed-in-lieu of Foreclosure, Pre-foreclosure, Short Sale - Case by case basis as event may have been beyond the borrower's control.
• Foreclosure - 2 years seasoning from date of foreclosure.

USDA Rural

• Chapter 7 Bankruptcy - 3 year seasoning required.
• Chapter 13 Bankruptcy - Minimum 1 year timely payout according to the repayment plan at time of application along with trustee permission letter for new mortgage.
• Foreclosure, Deed-in-lieu of Foreclosure, Pre-foreclosure, Short Sale - 3 year seasoning required from foreclosure end date to loan approval date.

Downpayment requirements may also change depending on the type of loan sought. If you think you may be able to qualify for a new loan, be sure to talk with a mortgage expert about your specific situation to make sure that these timelines apply. If you need a referral to an experienced mortgage lender, don't hesitate to contact me; I have good relationships with several great professionals who will take good care of you.

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I would love to help you with your real estate journey. 

Please contact me at 303-917-7143 or robbin@stauferteam.com

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