Home Ownership After Personal Financial Woes
Can you buy a home if you’ve had a foreclosure, short sale or bankruptcy?
The answer is yes. But you do have to wait a certain number of years before you can qualify for your next home mortgage. The length of that wait depends on the program you use to finance the new property.
The Osgood Team, based in Parker, Colo., is ready to help you if you have any questions about home ownership. If you’d like more information about qualifying for your next home mortgage, contact Bob Osgood at 303.513.4333 or [email protected].
In the meantime, here are some basic guidelines for the most common financing options:
FHA Loans (Federal Housing Administration)
• Foreclosure: 3 years
• Deed-in-Lieu of Foreclosure: 3 years
• Short Sale: 3 years (no waiting period may be allowed with extenuating circumstances and no late payments on previous mortgage, ask for details.)
• Chapter 7 Bankruptcy: 2 years
• Chapter 13 Bankruptcy: 1 year
VA Loans (Veterans Administration)
• Foreclosure: 2 years
• Deed-in-Lieu of Foreclosure: 2 years
• Short Sale: 2 years
• Chapter 7 Bankruptcy: 2 years
• Chapter 13 Bankruptcy: 1 year
USDA Rural Housing Loans
• Foreclosure: 2 years
• Deed-in-Lieu: 2 years
• Short Sale: 2 years
• Chapter 7 Bankruptcy: 3 years
• Chapter 13 Bankruptcy: 1 year
Fannie Mae/Freddie Mac (Conventional Conforming)
• Foreclosure: 7 years
• Deed-in-Lieu of Foreclosure:
2 years if financing ≤ 80% of the new property’s value
4 years if financing 81-90% of the new property’s value
7 years if financing > 90% of the new property’s value
• Short Sale:
2 years if financing ≤ 80% of the new property’s value
4 years if financing 81-90% of the new property’s value
7 years if financing > 90% of the new property’s value
• Chapter 7 Bankruptcy: 4 years
• Chapter 13 Bankruptcy: 2 years discharge, 4 years dismissal
Jumbo Loans (Conventional Non-Conforming)
• Foreclosure: 7 years
• Deed-in-Lieu of Foreclosure: 7 years
• Short Sale: 7 years
• Chapter 7 Bankruptcy: 7 years
• Chapter 13 Bankruptcy: 7 years
