Question:
“During the recession, my wife and had a lot of financial problems that really hurt our credit. How long do we have to wait before we can buy a home again?”
Answer:
Here’s a general guide given to me by a lender:
Conventional loan
- Chapter 7 BK: 4 years from the discharge/dismissal date
- Chapter 13 BK: 2 years from the discharge date or 4 years from the dismissal date
- Multiple BKs within a 7-year period: 5 years from the last discharge/dismissal date
- Foreclosure: 7 years
- Short sale / Deed-in-lieu: 2+ years
FHA loan
- Chapter 7 BK: 2 years from the discharge/dismissal date
- Chapter 13 BK: 1 year of the payout must have elapsed and borrower’s performance must be “paid as agreed.” Court must grant permission to the borrower to get a mortgage
- Foreclosure / Short sale / Deed-in-lieu: 3 years
VA loan
- Chapter 7 BK: 2 years from the discharge/dismissal date
- Chapter 13 BK: 1 year of the payout must have elapsed and borrower’s performance must be “paid as agreed.” Court must grant permission to the borrower to get a mortgage
- Foreclosure / Short sale / Deed-in-lieu: 2 years
Additional requirements for loan approval may apply. Your situation may vary, so contact me and I’ll put you in touch with my preferred lender and he can tell you specifically what your timing is.
