Knowledge is POWER! Especially in this MARKET!

I am asked the following questions on a daily basis, so I thought I'd post this information based on the most recent guidelines available.

If you've found yourself in a challenging position and had to make some hard decisions, hopefully you will find this information helpful as you plan for your future after a Foreclosure, Short Sale or Bankruptcy.

If you are seeking a CONVENTIONAL loan, here are the eligibility periods:

Chapter 7 Bankruptcy ~ 4 years from discharge dateChapter 13 Bankruptcy ~ 2 years from discharge date
Foreclosure ~ 4 years from completion date
Deed-In-Lieu of Foreclosure ~ 4 years from completion date
Short Sale ~ 2 years from completion date

If you are seeking an FHA loan, here are the eligibility periods:

Chapter 7 Bankruptcy ~ 2 years from discharge date
Chapter 13 Bankruptcy ~ 1 year of the payout must elapse & payment performance must be satisfactory Buyer must receive permission from the court to enter into a mortgage
Foreclosure ~ 3 years from completion date
Short Sale ~ 1 year from completion date if the borrower was current at the time of the short sale and all installment payments for a 12 month period ~ 3 years from completion date if in default at time of short sale

If you are seeking a VA loan, here are the eligibility periods:

Chapter 7 Bankruptcy ~ 2 years from discharge date
Chapter 13 Bankruptcy ~ 1 year of the payout must elapse & payment performance must be satisfactory Buyer must receive permission from the court to enter into a mortgage
Foreclosure ~ 2 years from completion date
Short Sale ~ No specific information on this yet, assume foreclosure rule of 2 years

If you are seeking a USDA loan, here are the eligibility periods:

Rural Bankruptcy (Ch 7 & 13) ~ 3 years from discharge date
Foreclosure ~ 3 years from completion date
Short Sale ~ No specific information on this yet, assume foreclosure rule of 3 years

*** Please remember, loan guidelines are subject to change without notice ***

Please know that there is a light at the end of the tunnel. You can be a homeowner in the future and I'll be here to help you when the time comes!