I just stole this from a newsletter I receive.
Waiting Periods for BK/FC/SSale
A common question from borrowers and homeowners these days is how long they will need to wait to buy again if a negative item appears on their credit report. Different loan programs have different disqualification periods for Bankruptcy/Foreclosure/Short Sale. Once the automatic disqualification period has elapsed, the normal income/asset/credit requirements typically apply. It is also important to remember that if a mortgage account is included in a Bankruptcy, then foreclosure waiting periods apply with all loan programs. Here is breakdown by loan program:
Conventional Loans
• Bankruptcy = 4 years
• Foreclosure = 5 years
• Short Sale = 2 years
VA Loans
• Bankruptcy = 2 years
• Foreclosure = 2 years
• Short Sale = industry standard is 2 years
FHA Loans
• Bankruptcy = 2 years
• Foreclosure = 3 years
• Short Sale = industry standard is 3 years unless no mortgage lates in the past 12 months and buying in a different geographic location (out of state job transfer for example).
Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
3131 E Camelback #120
Phoenix, AZ 85016
Phone: 602.793.7204
E-Fax: 602.889.2258
ryan@hsmove.com
{ 3 comments… read them below or add one }
Dave 02.06.10 at 9:05 pm
RE: the above described rules…who established them and what is their
weight in Law and what law applies …state or federal or both. Something does not seem right but I’m not sure what.
Burt Carlson 02.07.10 at 9:47 am
Generally speaking lending guidelines are established by a combination of Fannie Mae and Freddie Mac for conventional loans and FHA/VA for government loans. However, each individual lender may adjust the guidelines to meet their own objectives.
Ben 02.10.10 at 11:34 am
This if very helpful. Any ideas where they got this information from?