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Waiting Periods for buying after bankruptcy foreclosure short sale deed in lieu

2018 When Can I Qualify for a Mortgage After Bankruptcy, Short Sale, Foreclosure or DIL

Can I Get a Mortgage After a Financial Hardship?

Qualifying for a mortgage after financial hardship is normally only a matter meeting a minimum waiting period.  The waiting period is determined by the nature of the financial hardship and the type of mortgage your are applying for.

  • Conventional Mortgage – Waiting periods range between 4 years for bankruptcy and 4 to 7 years for foreclosure.
  • FHA Mortgage – Waiting periods range between 2 years for bankruptcy and 3 years for foreclosure.  Exceptions are rare.
  • VA Mortgage – Offers the most flexible and lenient waiting periods at 2 years from bankruptcy, foreclosure or deed in lieu.
  • USDA Mortgage – Waiting periods are 3 years after bankruptcy, foreclosure, deed in lieu or short sale.

Most people today were either directly affected, or know someone that was directly affected by financial hardship resulting in a bankruptcy, foreclosure, deed in lieu or short sale in the past 5 to 7 years.

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Often, a bankruptcy is followed by the default of a mortgage, and the loss of a home to foreclosure, short sale or deed in lieu.

It can get tricky knowing which waiting period apply and how to figure out the shortest waiting period possible.  This is a very popular subject as you can see if you scroll to the bottom of this article and see over 2,000 questions and answers dating back to early 2011.


FMWH Live Podcast: When Can I Buy After a Financial Hardship?

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Expert Interview – Meet Josh Lewis

Posted by FindMyWayHome.com on Thursday, August 31, 2017

I am joined by Josh Lewis of BuyWise Mortgage as we discuss  the waiting period, and common mistakes that lenders make when talking to people that have had financial hardships in the past.

Click Here for Show Notes and Valuable Links


2018 FHA Guidelines

  • Bankruptcy – You may apply for a FHA insured loan after your bankruptcy has been discharged for TWO (2) years with a Chapter 7 Bankruptcy.  You may apply for a FHA insured loan after your bankruptcy has been discharged for ONE (1) year with a Chapter 13 Bankruptcy
  • Foreclosure – You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date.
  • Short Sale / Deed in Lieu – You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date. FHA treats short sale, deed in lieu and foreclosure as the same waiting periods.

Credit must be re-established no late payments in past 12-24 months, depending on hardship

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Application Date must be after the above waiting period to be eligible for FHA financing after hardship.

2018 VA Guidelines

  • Bankruptcy Ch 7 – You may apply for a VA guaranteed loan TWO (2) years after a chapter 7 Bankruptcy
  • Bankruptcy Ch 13 – If you have finished making all payments satisfactorily, the lender may conclude that you have reestablished satisfactory credit.
    • If you have satisfactorily made at least 12 months worth of the payments and the Trustee or the Bankruptcy Judge approves of the new credit, the lender may give favorable consideration.
  • Foreclosure / Deed in Lieu – You may apply for a VA guaranteed loan TWO (2) years after the sale/deed transfer date.
  • Short Sale – VA does not recognize a short sale as a derogatory event.  If you are able to credit qualify for a VA loan, a short sale would not prevent you from being eligible for VA financing. – Updated 4/2016

Credit must be re-established with a minimum 620 credit score

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Application Date must be after the above waiting period to be eligible for VA financing after hardship.

2018 USDA Guidelines

  • Bankruptcy – You may apply for a USDA rural loan THREE (3) years after the discharge of a Chapter 7 or 13 Bankruptcy
  • Foreclosure – You may apply for a USDA rural loan THREE (3) years after the sale/deed transfer date.
  • Short Sale / Deed in Lieu of Foreclosure – If you had big issues the deed in lieu of foreclosure will be viewed as a foreclosure and you would want to wait no less than 3 years if the score is under 640.  Over 640 your UW will make the call but typically not less than one year.
  • UPDATED 12/2014 – Mortgage debt included in Bankruptcy will go by BK discharge date, and and subsequent foreclosure will not count as an additional waiting period, as long as you are off title for any defaulted mortgages.
  • Link to 12/1/2014 USDA Guideline – HB-1-3555  Attachment 10-B  See Page 31 of 34

Date of Credit Approval must be after the above waiting period to be eligible for USDA financing after hardship.

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2018 Conventional (Fannie Mae) Guidelines

  • Bankruptcy – You may apply for a Conventional, Fannie Mae loan after your Chapter 7 bankruptcy has been discharged for FOUR (4) years, TWO (2) years from the discharge of a Chapter 13
  • Foreclosure – You may apply for a Conventional, Fannie Mae loan SEVEN (7) years after the sale date of your foreclosure.  Additional qualifying requirements may apply,
  • Foreclosure / Short Sale / DIL included in Bankruptcy – You may apply for a Conventional, Fannie Mae loan after a minimum FOUR (4) years from the DISCHARGE of a Chapter 7 Bankruptcy, TWO (2) years from the DISCHARGE of a Chapter 13 Bankruptcy
  • Short Sale / Deed in Lieu of Foreclosure – UPDATED – Effective 7/29/2014:  Short Sale or Deed in Lieu of Foreclosure not included in a Bankruptcy has a new Waiting Period of FOUR (4) years from date your name is removed from title.

Credit must be re-established with a minimum 620 credit score.

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2018 Conventional (Freddie Mac) Guidelines

Bankruptcy (7,11,13) – You may apply for a Conventional, Freddie Mac loan after your Chapter 7 bankruptcy has been discharged for FOUR (4) years, or as determined by Loan Products Advisor (AUS)

  • Foreclosure – You may apply for a Conventional, Freddie Mac loan SEVEN (7) years after the sale date of your foreclosure or as determined by Loan Products Advisor (AUS)
  • Foreclosure / Short Sale / DIL included in Bankruptcy – You may apply for a Conventional, Freddie Mac loan after a minimum FOUR (4) years after the sale date of your foreclosure or as determined by Loan Products Advisor (AUS)
  • Short Sale / Deed in Lieu of Foreclosure –
  • You may apply for a Conventional, Freddie Mac loan FOUR (4) years after the sale date of your foreclosure or as determined by Loan Products Advisor (AUS)

Credit must be re-established with a minimum 620 credit score.

Fannie Mae and Freddie Mac have reduced waiting periods in cases of extenuating circumstances

Date of Credit Report must be after the above waiting period to be eligible for Conventional financing after hardship.

NOTE:  I do not yet have a success story for someone qualifying for the reduced time frames that Freddie Mac proposes to offer.  That shouldn’t stop you from trying.

2018 Jumbo Mortgage Guidelines

  • Bankruptcy – You may apply for a Jumbo mortgage loan once any chapter of bankruptcy has been discharged for FOUR (4) years, FIVE (5) years if multiple bankruptcy occurs on credit profile.
  • Foreclosure – You may apply for a Jumbo mortgage loan SEVEN (7) years after the sale date of your foreclosure.  Additional qualifying requirements may apply,
  • Short Sale / Deed in Lieu of Foreclosure – You may apply for a Jumbo mortgage loan:
    • SEVEN (7) Years from Short Sale or Deed in Lieu of Foreclosure with Maximum 80% Loan to Value
    • NOTE: There are investors out there that will allow you to buy again in FOUR (4) years after a short sale, but expect higher rates, higher fees, and possibly larger down payment requirement.  Jumbo lenders have not yet loosened up the qualifying guidelines for buying after a hardship.
    • It may make financial sense to consider a portfolio Jumbo lender that offer high rates, so that you can take advantage of today’s market.  Once your short sale is seasoned, refinance into a more favorable, longer term loan.

NOTE:  If hardship is the result of an extenuating circumstance, waiting periods may be reduced.  Contact lender for details.

Portfolio Loans

We are beginning to see more and more portfolio loans in the market that have relaxed waiting periods for bankruptcy, foreclosure, short sale and deed in lieu of foreclosure.  These are not necessarily subprime loans, but they do often have higher interest rates, and higher closing costs.

Portfolio loans are offered by investors that are looking at other compensating factors, like high credit scores, low loan to value (larger down payments), and reserves.

Do not rule out a portfolio loan as a “bridge” to get you into your home until you reach your waiting period for refinancing into a loan with better terms.


NOTE:  This page was first created in February, 2011, and is updated as new guidelines are released.

This page is monitored by Boomerang Buyer experts that understand the guidelines, and have successfully guided countless families back into homeownership after significant financial hardship.

About Your Expert

Scott Schang

As a 18 year veteran of the Mortgage and Real Estate industry, I am passionate about educating and empowering consumers. I have been writing about consumer protection issues, and making sense of complicated real estate and mortgage topics on this website since 2007

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2,243 Comments

  1. Diane on October 27, 2017 at 5:18 am

    Hi Scott, I filed for BK in 2009 it was discharged in 2013. Included in the BK was a property. The property was foreclosed in 2017. I was under contract with a lender to purchase a property got inspection and appraisal, but decided to pull out due to all the issue with the property. I started my search again and the lender told me there was a problem with the foreclosure. The mortgage was with Chase, but months after the discharge it was sold to round point mortgage. I was told due to round point buying the mortgage and sending me info that they were the new owners of loan my foreclosure waiting period had changed. So I was told I could not get a conventional loan at this time. I explained to them I did not contact them because I didn’t even know chase had sold the mortgage to them they sent me certified letters notifying me. What can I do at this point or do I still have to wait.

    • Scott Schang on October 27, 2017 at 4:52 pm

      Hi Diane,

      What you’re describing is that maybe Chase sent you a “Notice of Default?”. If Chase foreclosed, there would be no mortgage that could be sold to round point. There’s something missing here that your lender should have been able to explain.

      Either the home was foreclosed, and there would be no mortgage, or the home did not foreclose, which means you were never eligible to buy in the first place.

      This shouldn’t be that difficult to figure out. If you would like to shoot me an email to scott@findmywayhome.com, I’ll do as much as I can help you sort this out, and if we need an lender that has experience with these guidelines, I can point you in the right direction for that too.

      Either way, we’ll get to the bottom of this, and you’ll know exactly what your options are.

      Hope this helps?

  2. Cel on August 3, 2017 at 8:51 pm

    Hi, how do I fin out wf at type of loan I had? I’m getting different i formation on my eligibility to buy with husband using VA. I don’t recall having as PM I.

    • Scott Schang on August 3, 2017 at 8:56 pm

      Your lender can look up the loan in the CAIVRS system, that will tell you if it was a FHA mortgage.

      If you could give me more details about your situation, I can introduce you to someone that can help.

      Shoot me an email to scott@findmywayhome.com. When did you lose the home? Was it a foreclosure, short sale or deed in lieu? Was there a bankruptcy? And finally, what State are you buying in.

      I look forward to helping you take advantage of your VA benefits!

      Hope this helps?

  3. liz king on August 3, 2017 at 10:41 am

    Hi Scott,
    I am 4 years out from an FHA foreclosure due to divorce and looking to purchase again on my own. My credit is sitting at 650 and I plan to put 20% down but, I still have 2 items from the divorce I need to clear up. Will I be eligible for another FHA loan or will I have to seek another route?

    • Scott Schang on August 3, 2017 at 11:13 am

      Hi Liz,

      If the foreclosure was a FHA loan, then your 3 year waiting period begins from the date that the mortgage insurance claim is paid to the foreclosing lender. My experience is that this delays the “start” of the waiting period by several months. This date is not accessible to the general public, so the lender will have to look it up on the CAIVRS system, which tracks this stuff.

      I would be happy to introduce you to an experience lender that understands these guidelines, just shoot me an email to scott@findmywayhome.com and let me know what State you’re in?

      Last thought…was the mortgage included in a bankruptcy by any chance? If so, that may bring conventional financing into the picture, which will allow you to avoid the mortgage insurance with FHA.

      Hope this helps?

  4. Linda Ingersoll on August 2, 2017 at 8:27 am

    Hi, I am wondering if I can refi conventional with a 10/14 foreclosure date on my credit report. I did not receive any paperwork and worked with the lender to bring the account current. I am not able to get resolution with the lender or credit bureau to remove from my report. What are the chances I can get a conventional refinance at this time? thanks in advance!

    • Scott Schang on August 2, 2017 at 10:16 am

      Hi Linda,

      It sounds like you had a Notice of Default recorded in 10/14, but the home was never foreclosed? Is the message on the credit report say “foreclosure started”? If that is the case, then you would be eligible for conventional financing. I can help you find a lender that has experience with these guidelines.

      Shoot me an email to scott@findmywayhome.com, let me know what State you’re in, and I can make an introduction.

      Hope this helps?

  5. Jessica Cruz on July 29, 2017 at 1:15 am

    I had bankruptucky discharge in 2010 chapter 7 I had forclosure on sept 2016 the name was taken out of my name then but it was me and a cousin who owned the home I was in the military far away that I didn’t know he wasn’t paying for the home so it got forcloused on I come back and the bank won’t work with me so they forcliused on it so I wanna by a home now can I by pass the two year wait we. Live in New Jersey but would like to buy a home in New Jersey or Pennsylvania do you know anyone who would by pass the two year wait for me can it be done

    • Scott Schang on July 29, 2017 at 9:25 am

      Hi Jessica, thank you for your service!

      There are a couple of options here. There is a possibility that a good VA lender, and a detailed explanation would allow you to use your VA mortgage benefit.

      The other option is that you are eligible now using Conventional financing with as little as 3% to 5% down payment.

      I’ve made an introduction by email to a lender friend of mine that has experience with both of these options, you should hear from them shortly.

      Hope this helps?

  6. Lisa on July 28, 2017 at 2:01 pm

    I had my bankruptcy discharged in2011 I didn’t reaffirm my house. Today I want to buy another home. I have sold my home but I have had some late payments . Will the lending company still have to verify with my old lender about my previous payment history even though I I don’t have that mortgage any more? Please advise

    • Scott Schang on July 28, 2017 at 6:03 pm

      Hi Lisa,

      As long as you no longer own the home, you would be eligible for Conventional financing, 4 years from the discharge of the bankruptcy. The late payments are not considered. When you sold the home, were you able to pay off the mortgage in full, or was it a short sale?

      If you would like an introduction to a lender that I know that has experience with these guidelines, shoot me an email scott@findmywayhome.com and I can make connect you. Please include the State you’re buying in.

      Hope this helps?

  7. Courtney on July 27, 2017 at 9:01 pm

    I have a Chapter 7 bankruptcy that was discharged in July of 2014 there was no mortgage or short sale during the bankruptcy only Consumer Credit. And since then rebuilt my credit up to a 720 credit score and only a mortgage as debt.

    I am interested in two types of mortgage financing for a residential investment property.

    Since my bankruptcy I have bought one investment property with cash it’s owned by my LLC which I’m the single member of and I’m interested in any financing that I could secure against this property. To purchase the afformentioned residential investment property.

    I am also interested in securing a mortgage for this residential investment property personally using any type of mortgages that are available to someone like myself with a Ch7.

    I’m sitting on a decent amount of cash to keep the LTV at 60-80%

    I am also self-employed and have been for the past 17 years. My wife and I file a joint tax return and she is also self-employed but Pace herself with a W-2 our combined income is about $70,000 a year.

    • Scott Schang on July 28, 2017 at 8:50 am

      Hi Courtney,

      The BK7 is going to prevent you from buying an investment property using a conventional (Fannie Mae or Freddie Mac) loan until 4 years following the discharge. In the meantime, there are portfolio and hard money lender that will lend you the money if you’re close to 60-70% LTV until next July when you can refinance into a conventional loan.

      I am going to make an introduction to a very creative lender friend of mine that might have a solution. I will send an intro by email.

      Hope this helps?

  8. Doug on July 27, 2017 at 9:29 am

    Bk in 7/2014 with foreclosure included. Kept a primary residence that had a lot of equity. When am I able to get a refinance with money out or home equity loan to do home improvements. I see Freddie Mac has a 3 year waiting period. Is that true

    • Scott Schang on July 27, 2017 at 9:35 am

      Hi Doug,

      The waiting period will depend on what type of financing you are applying for. FHA financing would be available to you 3 years from the foreclosure, as long as it’s also been a minimum of 2 years from the BK discharge.

      Conventional Fannie Mae guidelines allow you to use the bankruptcy waiting period of 4 years from discharge and ignore any subsequent foreclosures. If the foreclosure happened prior to the filing of the bankruptcy, Conventional is going require a 7 year wait from the foreclosure date.

      Although Freddie Mac has said that it’s automated underwriting system will allow reduced waiting periods, I have never been able to get one approved.

      Finally, there are always portfolio loans available that will require higher rates and fees, but it will get you access to your equity, and you can refinance into a better loan once eligible.

      If you would like an introduction to a lender that has experience with these guidelines, feel free to shoot me an email to scott@findmywayhome.com and I will try to point you in the right direction.

      Hope this helps?

  9. Toni S. Holcomb on July 26, 2017 at 5:35 am

    We had a home in pre-foreclosure, but we paid off the arrears before the house was sold in foreclosure. Our credit scores, as a result, took a hit and are between 640 for my husband and 660 for me. We aren’t eligible for FHA because we have another home which is a rental property which has FHA loan. Any hope for a mortgage?

    • Scott Schang on July 26, 2017 at 9:04 am

      Hi Toni,

      A pre-foreclosure happens when you fall behind on your payments. Catching up your payments will ultimately “start” the clock again fro what an automated underwriting system looks at. In all of my experience, the “magic number” is 12 months with no late payments.

      Is your rental less than 100 miles from where you want to buy the new home? There is no restriction from using FHA again, other than the 100 rule from a property that you already own.

      If you would like an introduction to a lender friend of mine that has experience with these guidelines, shoot me an email to scott@findmywayhome.com and I can help you find someone that can explore all of these options for you.

      Hope this helps?

  10. Tom on July 23, 2017 at 10:21 am

    Hi Scott. I’m in the military and can’t sell a home I own in another state. It’s pending short sale. Could I get a construction loan while this sale is pending ?

    • Scott Schang on July 23, 2017 at 11:04 am

      Hi Tom, thank you for your service!

      Let me start by saying that I do not have any personal experience with waiting periods and construction loans. That said, this is a tough question. If there are late payments on the home that you’re trying to short sell, it would negatively affect your credit, and that would prevent you from qualifying for a new loan.

      Construction lending is a little bit of a different animal than traditional conventional, FHA, VA or USDA. All this really means is that the lender can have their own guidelines.

      For the permanent loan, if you are eligible for your VA guaranteed housing benefit, VA does not recognize a short sale as a hardship. I know several lenders that will allow a VA loan after a short sale.

      Both FHA and Conventional guidelines are going to require a waiting period from the date of the short sale. That would be the reason why a construction lender may not be comfortable with your scenario. Construction loans are typically very short term, and are meant to be refinanced into a permanent loan upon completion of the construction.

      The last thing I can offer is a second opinion. If you would like, shoot me an email to scott@findmywayhome.com, and let me know what State you’re you’re living in. I can check my expert network for someone with construction loan experience.

      Hope this helps?

  11. DAWN GENTHER on July 20, 2017 at 12:31 pm

    We had a bankrupcy that was discharged in 2012 in which our home was included. The bank finally got around to foreclosing but we were told it would be better to short sale which we did and house sold 1/25/16. We are now wanting to buy and are being told we cant due to short sale date. So upset and aggravated. Any hope for us to buy now?

    • Scott Schang on July 20, 2017 at 2:18 pm

      Hi Dawn,

      You are absolutely eligible to buy using conventional financing now. Most lenders doe not have experience with these guidelines, or choose to not help folks with financial hardship in the past because it requires a little bit more paperwork (BK petition, discharge and final HUD from sale).

      If your situation is not easy enough, many lenders will simply tell you that you don’t qualify instead telling you that they choose not to help.

      Send me an email to scott@findmywayhome.com and let me know what State you’re trying to buy in, and the best way to reach you, and I will introduce you to a lender friend of mine that has experience with these guidelines.

      Hope this help?

  12. Aria on July 18, 2017 at 1:53 pm

    We completed a DIL in June 2016 due to job relocation. We would like to apply for a home loan but were told by our broker than we have to wait 2 years and prove the hardship. The builder referred us to someone who claims they are able to bypass the 2 year waiting period with a strong package. This seems fishy so we’re trying to understand what the catch is. The rep claims that the mortgage doesn’t necessarily come with a fee or higher interest rate. Have you heard of anything that allows someone to bypass the seasoning period altogether? If so, what does this entail and is it something I should stay away from ? I don’t want to get the house at the expense of paying more or being in something that will hurt me financially in the end. (FYI, my broker said something about it being an unsalable loan but I don’t understand what this means). thanks for your help!

    • Scott Schang on July 18, 2017 at 2:21 pm

      Hi Aria,

      Great question! Your broker is correct that this is an unsalable loan. That really just means that if they give you the loan, they are using their own money. The way 99% of all mortgages work is that the loan is approved using Fannie Mae or FHA guidelines for instance, then, once the loan is funded, the bank will “sell” the note on the secondary market, and a different lender will collect payments. This enables the original lender to get their money back that they just lent to you, so that they can lend it to someone else.

      What the builder is describing is a portfolio loan. This is just a fancy way of saying that they are lending their own money, and so they can make their own rules. Normally, portfolio loans are considered “higher risk” and require a larger down payment, higher interest rates and higher closing costs.

      That said, I’ve heard of credit unions doing loans like this at pretty competitive rates.

      Getting a conventional loan in less than 4 years is going to require an extenuating circumstances exception. The burden of proof for this exception is that it was a one time event that was completely outside your control. In your case, the move would have had to have been forced by your employer, and not a choice.

      You can’t really go wrong by pursuing the option the builder is offering. If you look at it this way, “why would the builder be willing to sell you the home unless they believe that lender can help?”.

      Don’t lose my info. You can also email me directly at scott@findmywayhome.com. Reach out to the builders lender, then run it by me and I’ll let you know what I think is going on.

      Hope this helps?

  13. JD on July 17, 2017 at 7:07 am

    Hi Scott,
    My wife and I had a foreclosure in Oct 2011. We have an FHA mortgage on our primary residence and would like to now buy an investment property. I’m told the foreclosure is preventing this opportunity for us. Can you point us in the right direction to move forward with our goals? Thanks!

    • Scott Schang on July 17, 2017 at 10:03 am

      Hi JD,

      Was the mortgage included in a bankruptcy by any chance? If there was no BK, or if there was, and the foreclosure took place prior to the BK, there is a 7 year waiting period before being able to use Conventional financing to purchase an investment property. So, using traditional financing, you’ve got another year + before you can use conventional financing.

  14. Scott Rose on July 15, 2017 at 8:57 pm

    Ive heard that lenders are more flexible with lending now than In the past, even fro those who have had a Bk. I live in Tucson and I had a Ch 7 discharged 12 months ago. Is it possible to buy a home 12 months out form discharge date? Are there other loan types? With my income I qualify for a home purchase up to $525. What options if any do I have?

    • Scott Schang on July 15, 2017 at 9:11 pm

      Hi Scott,
      Yes, there are loan programs that will allow you to buy 12 months from a bankruptcy. These are going to be portfolio loans, and will require a higher down payment, and higher rates and fees.

      You just have to run the numbers, and determine if it makes sense for you.

      If you would like, shoot me an email to scott@findmywayhome.com, and let me know what State you’re buying in, and I can introduce you to someone that has experience with these programs.

      Hope this helps?

  15. Antoinette on July 13, 2017 at 9:29 am

    Had a short sale three years ago ready to buy again using conventional loan plan to put down 40% credit is excellent how long do I have to wait

    • Scott Schang on July 13, 2017 at 10:18 am

      Hi Antoinette,

      Conventional financing is going to require a 4 year wait from the closing date of the short sale. I would recommend buying now using FHA, then look to refinance using a conventional loan when you’re eligible.

      The mortgage insurance you would pay on a FHA loan is going to be minimal compared to the potential equity you can earn over the next year. If you choose to not buy now, instead of having equity in your home, you’re just going to have higher home prices.

      Does this make sense?

      If you would like an introduction to a lender that has experience with these guidelines, shoot me an email to scott@findmwyayhome.com with the best contact information for you, and what State you’re buying in.

      Hope this helps?

  16. LanLan on July 13, 2017 at 5:28 am

    Hi Scott,
    In 2007, we moved to Atlanta and purchased our first home. In 2008, my husband hours were cut from 40 hours a week to 20 hours, our mortgage kept on going up and we were bringing in less money. In October of 2009, we filed for Chapter 13 and included our mortgage from Bank of America. The BK was discharged in April of 2015. Fast forward to now. We live in Texas and home prices are going up by the month.We were pre-approved for a conventional loan with 3% down and everything was going well until yesterday. The loan officer said that BOA showed the foreclosure to be in December of 2011 and I will not be eligible for a conventional loan until Dec of 2018. The mortgage was included in the Chapter 13. BTW, the foreclosure was never on my credit report and my credit report no longer shows the Bankruptcy since i filed in 09. Should they go with the discharge date or foreclosure date? What should i do next, my credit middle score is 655. My youngest is in a special need program because she has Autism. She has meltdowns where the downstair neighbor have called the cop for a 4 y.o. We have a combine income of $125,000 a year but we can’t buy a home. I know we can qualify for a aha loan, but the limit in this area is $362,250 and the home prices starts in the low $400’s. I can’t leave the area because we need to stay in the district for my daughter’s school and therapy. Please help, we are due to close on July 28 of 2017

    • Scott Schang on July 13, 2017 at 10:15 am

      Hi LanLan,

      Your lender is either unfamiliar with, or has chosen not to follow the underwriting guidelines that would allow you to buy now with a 3% down conventional loan.

      You’re buying in Texas? Please send me an email to scott@findmywayhome.com and I will introduce you to a lender that has experience with these guidelines and will not have a problem with the timing of the foreclosure.

      Hope this helps?

  17. Dan Haller on July 12, 2017 at 7:17 pm

    Scott,
    My wife and I had a short sale three years ago this last march. Before we short sales the home we had purchased another home, we are now thinking about changing locations due to kids schooling. Question we will have about 25-30% down on a conventional 30 year (non jumbo) we keep hearing conflicting time frames either 3 or 4 years, my interpretation. Is 3 years.
    Current beacons are just shy of 800.

    • Scott Schang on July 12, 2017 at 7:35 pm

      Hi Dan,

      Both 3 and 4 years are correct, depending on what type of loan you use. With 25-30% down, your conventional loan is a 4 year waiting period. If the mortgage was included in a bankruptcy, that time line might be less.

      FHA will allow you to buy in 3 years form a short sale. It wouldn’t be a bad idea to buy with FHA if possible, and look at refinancing into conventional at the 4 year mark.

      Hope this helps?

  18. Leah on July 12, 2017 at 2:09 pm

    Hi Scott,
    I had a short sale in 2014 in Maryland. I have moved to Texas now & wanted to check how soon can i get a mortgage. My credit score is in the 700’s. Thank you

    • Scott Schang on July 12, 2017 at 4:12 pm

      Hi Leah,

      The timeline for when you can buy again will depend on the type of financing you’re using to buy the home. Both FHA and USDA will require a 3 year waiting period from the date that your name was removed from title. Conventional financing is going to require a 4 year wait from the short sale.

      Would you like an introduction to a lender that has experience with these guidelines?

      Hope this helps?

  19. Barbara on July 11, 2017 at 4:56 am

    My husband and I had bankruptcy in 2009 included mortgage home was never foreclosed we cashed in a 401k and bought a home cash in another state(could no longer afford to live in NJ). Home was never foreclosed. We just signed a DL for Ditech the new owner of the loan. We were just told by a lender that we now have to wait another 3 to 4 years for a new loan. Is this accurate. Thanks

    • Scott Schang on July 11, 2017 at 9:50 am

      Hi Barbara,

      No, that is not accurate. I am going to introduce you to a lender friend of mine in NJ that can help. You are eligible for conventional financing as long as your name is off the other title, which it sounds like it is.

      I’ll that introduction by email now. You should hear from Tony shortly!

      Hope this helps?

  20. Kym Erickson on July 8, 2017 at 8:43 pm

    My husband and I are 6 years outside of our bankruptcy and we are looking to move to Minnesota for a job. Is there any loan that we could potentially get, to buy a house, with zero money down. This came situation came by surprise and we just want to know our options.

    • Scott Schang on July 9, 2017 at 10:33 am

      Hi Kym,

      The only options for zero money down would be a VA Guaranteed loan, or a USDA loan. If you or your husband are a Veteran, VA is a great loan. USDA financing requires that you buy in an area that is “eligible”.

      Other than those 2 options, Conventional allows as little as 3% down payment. FHA allows as low as a 3.5% down.

      The bankruptcy would not prevent you from using any of these programs.

      Was there a mortgage included in that bankruptcy by any chance? If there was, that might change my answer.

      If you would like, shoot me an email to scott@findmywayhome.com with the answer to this question, and I can introduce you to a lender friend of mine that has experience with these programs.

      Hope this helps?

  21. Alex on July 6, 2017 at 8:03 pm

    I filed for bankruptcy less than a year ago and then got married. My spouse was not included in the bankruptcy. His credit score is in high 700s. Mine is around 650. We are looking to buy the condo we are currently renting in, but are not sure how to go about it. Together, we make about 145k, most of which is my incomes. We would be able to put down about 3-5% of our desired 350k home. What would be our best route, if any? Your advice would be much appreciated!

    • Scott Schang on July 6, 2017 at 8:31 pm

      Hi Alex,

      As long as there were no mortgages included in your bankruptcy that eventually defaulted, you would be able to buy using FHA financing in 2 years from the BK discharge. Unfortunately, if your income is required to purchase in the price range that you’re looking at, you’re going to be subject to those waiting periods. 2 years would be the soonest.

      One option might be if your spouse has a co-signer to use for qualifying, then you could refinance once you’re eligible to go on the loan.

      If you would like to talk to an expert about your options, I’m happy to make an introduction. Just email me at scott@findmywayhome.com and let me know what State you’re buying in.

      Hope this helps?

  22. George K. on July 5, 2017 at 6:19 pm

    My wife was primary income earner at the time of her job loss 12/15, took severance and paid up mortgage to 07/16, paid one more mortgage payment before deciding to file for short sale(she still hadn’t found a job). Executed short sale 02/17 and now we own my parents home thru warranty deed transfer(value around 180k) and looking to do a cash out refi for reno. Any suggestions?

    • Scott Schang on July 5, 2017 at 8:03 pm

      Hi George,

      There are portfolio loans that will allow this, but the rates and fees are much higher than traditional loans. If you would like to speak to a lender that has experience with those programs and can lend in NV, shoot me an email with your contact info and I can make that introduction.

      Hope this helps?

      • George K. on July 7, 2017 at 1:48 pm

        Unfortunately I’m in GA, do you know of any(portfolio lenders) in my state?

        • Scott Schang on July 7, 2017 at 3:57 pm

          Hi George,

          I have a really good lender friend that can help in GA. I am going to send an introduction by email now.

          Hope this helps?

  23. Mubeen on July 5, 2017 at 3:55 pm

    Hi There!

    So I had a foreclosure that took place in 2011 and I am currently looking to buy a home. However, although the foreclosure is in the public records, it does not show up on my consumer credit report. My credit scores are currently 780, 706, & 758. The loan broker I was working with told me that she needed to add it to my credit since it was not on their before. Since 2011 I have worked hard to get my credit over 700, paid all my bills on time and lowered the total amount of credit utilization that I have. How much of a hit will I take now and do you recommend that I wait anther year so that the foreclosure is over 7 years old? How much does credit score play into the ability to get a good loan rate? I am looking to put up to 40% down but would prefer to do less. Any information would be helpful

    • Scott Schang on July 5, 2017 at 8:00 pm

      Hi Mubeen,

      I think you may have mistaken what your loan officer told you, at least I hope you did.

      Yes, the lender has to “count” the foreclosure. You are only eligible for FHA, VA or USDA financing right now. A Conventional loan is going to require a 7 year wait from the date of the foreclosure.

      There should be no reason why your lender would try to get a foreclosure reported on your credit. I don’t think they could do it, only the creditor can report payment status.

      It makes me a little nervous that your loan officer was not able to explain this better.

      I have lender friends that have a lot of experience with these guidelines. If you would like a second opinion, shoot me an email to scott@findmywayhome.com with the State you’re buying in, and the best way to contact you.

      Hope this helps?

  24. Harry on June 21, 2017 at 2:01 pm

    2yrs out of Chapter 7 but DIL which was in bankruptcy, and I am being told I have to wait 3yrs from title transfer instead of the discharge date of bankruptcy in FL. Can you give me some info if any way around this? I have 650 score and 25yrs on job.

    • Scott Schang on June 21, 2017 at 5:32 pm

      Hi Harry,

      FHA is going to require a 3 year wait from the date your name is removed from title, that is accurate. The next shortest waiting period is Conventional financing will allow 4 years from the BK discharge, and you can ignore the DIL date.

      There are options, but you would be looking a minimum of 15% to 20% downpayment, and the rates and closing costs are going to be higher than a traditional loan.

      Here’s more information on Portfolio loans – https://www.findmywayhome.com/home-mortgage-news/specialty-loans/more-options-with-portfolio-mortgage-loans/

      I actually think it makes a lot of sense in many cases.

      if you think it might be an option, I have a lender friend that has experience with these loans and can help. Are you buying in FL?

  25. Porfirio F on June 19, 2017 at 2:07 pm

    Scott, We did a short sale on our property in July 2012. We were able to purchase a new home 20 2016 and are very happy now.Will we be able to apply for a equity loan due to our short sale in 2012

    • Scott Schang on June 19, 2017 at 2:15 pm

      Hi Porfirio,

      Home Equity Lines of Credit (HELOC) is normally offered through a depository bank or credit union. Because the nature of these institutions is that they are more conservative, and the fact that it’s a second lien position, it may be challenging finding a “stand alone” HELOC that will allow a short sale 5 years ago.

      That said, I know of several lenders that will allow a HELOC / second mortgage behind a conventional first mortgage if you’re doing them both at the same time. You should also be able to do a cash out refinance of your current mortgage to take out the equity you need.

      I am in California. If you’re not in California, I can introduce you to a lender friend of mine that might be able to offer a second opinion, or may have access to these programs? If you would like, shoot me an email to scott@findmywayhome.com and let me know what State you’re in.

      I will see if I can get you pointed in the right direction! Hope this helps?

  26. Porfirio F on June 19, 2017 at 2:06 pm

    Scott, We did a short sale on our property in July 2012. We were able to purchase a new home and are very happy now. We able to purchase a new home. Will we be able to apply for a equity loan due to our short sale in 2012

  27. Kealana Rede on June 19, 2017 at 11:04 am

    We are over a year out from bankruptcy and 6 months out from my husbands foreclosure. Both of these occurred because of something out of our control. After much research regarding USDA loans, why is it so hard to find a lender that is willing to look at our situation and consider “extenuating circumstances” instead of just throwing us to the curb? Are there any companies that will actually help a potential customer utilize the USDA mortgage loan as it was intended for? To help a family get into a safe home? USDA has guidelines about “indicators of unacceptable credit” and they mention, under chapter 10 Credit Analysis, that there are different methods to get an individual approved for a USDA loan. So, why is it so difficult to find a lender that will follow the guidelines of USDA and not just use their own rigid guidelines? If a company is going to be a part of the USDA Mortgage list, then why not actually be for the people and help those who wouldn’t otherwise qualify for a loan, get a loan?
    Thank you for your help!

    • Scott Schang on June 19, 2017 at 12:27 pm

      Hi Kealana,

      I understand your frustration. Qualifying for an extenuating circumstances exception is extremely difficult to get. I’m not sure what your situation is, or who’ve you’ve spoken to about your situation, so it’s a little difficult for me to share my opinion.

      If you would like, shoot me an email to scott@findmywayhome.com with more detail about what your extenuating circumstance is, and let me see if I can find someone that I can introduce you that has had success with getting these exceptions.

      Please also include the State you’re buying in.

      Hope this helps?

  28. Todd Miaer on June 18, 2017 at 8:51 am

    I was discharged my chapter 7 three years ago before I got married. It took 2 1/2 years to foreclose on my property. I am now married my wife has a 740 credit score, and I have a 715 cany chance on be buying a house in the next year?

    • Scott Schang on June 18, 2017 at 11:59 am

      Hi Todd,

      Conventional financing will allow you to use the BK waiting period, and ignore the foreclosure date. The waiting period is 4 years from the bankruptcy discharge for conventional financing. FHA will allow you to buy in 2 years from the chapter 7 discharge, but will require an additional 3 years from the foreclosure.

      So, you’re about 12 months out (4 years from BK) for traditional financing.

      There is another option if you want/need to buy sooner. You can look at a portfolio loan if you have 15% to 20% down payment. A portfolio loan is going to have higher interest rates and closing costs, but it will get you into the home until you can refinance into conventional at your 4 year mark.

      If you would like an introduction to loan officer that is familiar with all of these guidelines, feel free to drop me an email to scott@findmywayhome.com. Let me know what State you’re buying in, and . I can make that connection for you!

      Hope this helps?

  29. Hugh on June 15, 2017 at 6:36 pm

    I lost my secondary home to foreclosure due to back taxes. I owned the home and it had no liens but the foreclosure shows up on a drive report. It did not affect my credit. It has been nearly 3 years since the transfer was recorded. Can I get a usda loan prior to the three years?

    • Scott Schang on June 16, 2017 at 12:23 am

      Hi Hugh,

      That is a great question, I have not run into this scenario before. If there is a foreclosure in public records, I think that would prevent you being able to use USDA until after the 3 year mark. The guidelines do not specify what caused a foreclosure, only that if a foreclosure occurs, the waiting periods must be met before being eligible to buy again.

      I do not have any personal experience with this scenario, so please feel free to get a second opinion!

      Hope this helps?

  30. BRUCE LEBOEUF on June 15, 2017 at 12:46 pm

    Sorry. I’m confused bold red lettering on this website dating 4/3/17

    Whats the waiting period for a conventional loan after a short sale. 2 3 0r 4 years. Sorry. One lender told me 4 years. Thanks

    • Scott Schang on June 15, 2017 at 12:51 pm

      Hi Bruce,

      Freddie Mac states that they will allow less than 4 years if you can get an automated underwriting approval. I personally have not been able to get an automated underwriting approval in situations where I would have thought I would.

      4 years is the standard waiting period.

  31. Ted on June 14, 2017 at 8:21 am

    I’m being told after I already locked my rate and paid for an appraisal that I can not refinance my FHA loan into a conventional Freddie Mac loan even though I had a short sale happened well over 3 years ago. Is this correct? I just wanted to refinance my loan into a conventional loan. They say I can’t refinance out of my FHA Loan into a conventional, they say something in the small print.

    • Scott Schang on June 14, 2017 at 10:46 am

      Hi Ted,

      I am so sorry to hear this, your loan officer never should have let you pay for an appraisal. There is no small print, it’s a standard guideline that you would not be eligible for conventional financing until 4 years from a short sale.

      If the short sale was included in a bankruptcy, that might shorten your waiting period.

      Unfortunately, your loan officer made a mistake. You should probably try to get them to refund the cost of the appraisal for you.

      On another note, if your FHA rate is higher than 4% now, I would seriously consider doing a FHA streamline to drop the rate to 3.5% now, then you can look at a conventional loan that will remove your mortgage insurance as soon as your short sale is seasoned.

      The shame is, there is no appraisal required with a FHA streamline. Either way, I would use a different lender…for 2 reasons. First is the obvious reason that this lender is not experienced. The second is that the market made a serious move today and interest rates will be better than when you locked.

      If you would like a second opinion, or would like to explore any of these options, shoot me an email to scott@findmywayhome.com and I can introduce you to a lender friend of mine that has experience with these guidelines.

      Hope this helps?

      • Ted on June 14, 2017 at 9:03 pm

        Thank you. Streamline is not an option for me. I was trying to refinance my 30 FHA loan into a conventional 15 year loan. Every thing was going fine until this came up which wells fargo should have disclosed to me from the being. I told them it was a FHA loan. I am 4 moths from the 4 year mark. Hope I get a miracle rate drop at that time.

        • Scott Schang on June 15, 2017 at 10:42 am

          I don’t think you have to worry about rates too much. It’s impossible to know for sure, but I think you’ll be fine as far as rates go.

  32. Heidi on June 13, 2017 at 9:37 pm

    We are applying for a mortgage loan after 6 years from our Deed in Lieu of Foreclosure. We have below a 60% LTV. We were told that an FHA loan requires PMI insurance for the first 11 years. Is that correct?

    • Scott Schang on June 14, 2017 at 10:49 am

      Hi Heidi,

      With a 60% LTV and 6 years from a deed in lieu, why are you using FHA? The conventional waiting period is only 4 years.

      Also, FHA mortgage insurance is permanent (life of loan) if you are getting a 30 year fixed. It’s 11 years if you are getting a 15 year fixed loan.

      It sounds to me like your lender may not have experience with these guidelines. If you would like an introduction to someone that does have experience with these guidelines, shoot me an email to scott@findmywayhome.com and I can make that connection for you.

      Hope this helps?

  33. Rebecca on June 13, 2017 at 3:44 pm

    Disappointed to find out my hardship fire is not included toward why I filed bankruptcy and cannot get a home lian

    • Scott Schang on June 13, 2017 at 3:53 pm

      Hi Rebecca,

      It sounds like you are referring to an extenuating circumstances exception as a means to lower your waiting period? The burden of proof for filing bankruptcy is much lower than the documentation and reasons for granting an exception for shorter waiting periods.

  34. kersha on June 11, 2017 at 9:04 pm

    Hello,

    i live in Nc i got divorced and forclosure in 2008. i am a year and half discharged from my banckruptcy. my credit score sits with 710. i have recently remarried and my husband is two years+ out of bankruptcy,but he didnt claim his house on his he continued to pay on time,his credit score sits about 780. we want to purchase a home together. should we wait my full two years to apply?

    • Scott Schang on June 11, 2017 at 9:11 pm

      Hi Kersha,
      This gets tricky because 2 years after Bankruptcy is a FHA guideline. It will depend on what you plan to do with the current home. As long as you stay current, and can sell the home for what you owe on it, you could use FHA in 2 years from the discharge date.

      If you do not wish to sell the current home, the new home would need to be a minimum 100 miles from your current home.

      You would have to wait for your bankruptcy to be 2 years if your income is needed to qualify for the mortgage on the new home. Otherwise, if your husbands income is enough to buy, you are eligible now.

      This sounds like it could be more complicated. If you would like to email me directly, you can reach me at scott@findmywayhome.com. If you would like an introduction to a lender friend of mine that has experience with these guidelines, I may be able to do that as well.

      Hope this helps?

  35. Bruce Rilee on June 11, 2017 at 2:53 am

    Short sale on vacation rental on 12/19/14 and now want to buy second home. Purchase price will be $380K and could put 20% down. Credit scores over 700. Can we purchase this home now? If so, could you recommend a lender?

    • Scott Schang on June 11, 2017 at 9:55 am

      Hi Bruce,

      To use Conventional financing to purchase your second home, it requires a 4 year waiting period from the date your name is removed from title.

      There are portfolio loans available that, with 20% down and a 700 FICO would have higher rates and fees than a conventional loan, but I think the math works.

      Since you only need a portfolio loan until 12/19/18, it might make sense to explore.

      I can introduce you to someone that has experience with these programs and can help you explore this option. Shoot me an email to scott@findmywayhome.com and let me know what State you’re buying in.

      Hope this helps?

  36. Jason on June 10, 2017 at 6:04 pm

    Chapter 13 was discharged in 2015. We surrendered the house in a he chapter 13 too. May 2017 the foreclosure process started and we redeemed the house by selling it on the market after the sheriff sale. Our credit is good, the bank has never reported anything, so the only blemish right now is the chapter 13. My question is can we qualify for a loan right now? It has been over 2 years since discharge. But we now have a redeemed foreclosure.

    • Scott Schang on June 10, 2017 at 9:41 pm

      Hi Jason,

      You are eligible to buy now. As long as your name is off title, and the home was included in the Chapter 13.

      I can introduce you to a lender that has experience with these guidelines. Shoot me an email to scott@findmywayhome.com and let me know what State you’re trying to buy in. I’m can point you in the right direction.

      Hope this helps?

  37. Rob on June 9, 2017 at 7:13 pm

    We purchased our home in 2003. Over the years,we refinanced and such. In 2010 we were forced into bankruptcy. We never reaffirmed the debt. Fast forward almost 7 years later my job has taken me to a new city. However, the family is not able to move down right away due to other obligations. I have since decided to build. Everything is good except for the current home. It is not ready to sell and the family can not move until the new house is ready. The new mortgage company is,still trying to figure out what to do since we did not reaffirm the debt. What are our options?
    I should add that because of the market we currently owe more than the house is worth. Even when we sell we will take a loss

    • Scott Schang on June 9, 2017 at 9:26 pm

      Hi Rob,

      As long as the payments are current on your home, you should be eligible. I don’t have a lot of experience with construction loans, as they are not very common in Southern California where I live.

      I have many lender friends around the Country that have experience with the guidelines for borrowing after a bankruptcy. There should be no reason why you cannot qualify for a new loan. The lender simply needs to order a 12 month payment history (called a verification of mortgage) to document that you have continued to make your payments on time.

      If you have not been making payments on your current home, you would not be eligible until your name is off title of that home.

      If you would like to speak to someone familiar with these guidelines, shoot me an email to scott@findmywayhome.com and let me know what State you’re buying in.

      Hope this helps?

  38. Scott on June 7, 2017 at 10:16 am

    I got a divorce. I lived with my ex wife in her condo she had a primary mortgage. We did have a heloc llater in the marriage. I filed a chapter 7 after my divorce and it was discharged in October 2015. Is the two year waiting period from the discharge date? I am told since my ex wife who just recently went through a bankruptcy still hasn’t forclosed on the condo my waiting period hasn’t started? Which is correct?

    • Scott Schang on June 7, 2017 at 1:49 pm

      Hi Scott,

      If you are no longer on title to the condo, your waiting period would be from the discharge of your bankruptcy. If you are still on title, and one or more of the mortgages are in default, then there may be an additional timeline from the foreclosure date, depending on what type of financing you are applying for.

      If you are on title, and if the mortgages are in default, there would be a 3 year wait from a short sale, deed in lieu or foreclosure for FHA financing, or a 4 year wait from the discharge of the bankruptcy as long as your name is removed from title.

      Does this make sense?

      • Scott on June 7, 2017 at 5:27 pm

        I was only on the HELOC. So is that considered a title? Either way I forfeited that debt in the chapter 7. So it should be from discharge date?

        • Scott Schang on June 7, 2017 at 10:44 pm

          Being on the loan is not what will determine the timeline as much as whether or not you’re on title to the home. Did you quit claim off title as part of the divorce? If you are still on title, you would be unable to do anything if the HELOC is not current.

          If you would like, you can shoot me an email directly to scott@findmywayhome.com and we can figure this out. I know it’s confusing.

  39. Perri on June 7, 2017 at 7:45 am

    Hello Scott, Thanks so much for this very informative article and for keeping it updated.
    My husband and I completed a DIL that was transferred into the bank’s name in May of 2015. It was not part of a bankruptcy. We’ve been renting since then and we really want to purchase a home. We’re looking into every option we can think of – even manufactured housing, but we’re getting a lot of different answers from different people regarding our ability to purchase whether it’s a manufactured or stick-built home. We’ve been pretty actively, but unofficially, pursuing this for a few months now and all my research has left me confused.
    So, at this point – assuming decent credit of at least 640, but with no real down payment, would you recommend that we just wait for another year and try for FHA or USDA? Or is there anything at all we could qualify for right now? And, if we wait, could we qualify for any conventional loans without a 20% down payment?
    And, can you offer any advice regarding manufactured housing? I realize it depreciates, but our intent is not to sell in the future – we just want a smaller home to grow old in.
    Obviously, I realize you can’t give me a comprehensive answer without really knowing and understanding our unique circumstances, but I’m hoping maybe you could give some general advice. It would be very much appreciated.
    Perri

    • Scott Schang on June 7, 2017 at 10:27 am

      Hi Perri,

      Manufactured housing is difficult because it’s not considered “traditional” financing. When financing is available, it usually requires a larger down payment and higher credit scores. I would suggest that if you’re interested in moving in that direction, ask the seller of the home about if it’s ever been financed. I know that Wells Fargo used to have financing programs for manufactured housing…that might be another place to start.

      As far as buying a single family home with traditional financing, FHA and USDA are going to be available at 3 years from the Deed in Lieu, Conventional is going to be 4 years.

      You can use conventional financing with as little as 3% down with income limits, or 5% down under any other circumstances.

      If you are eligible for VA housing benefits (Military), the wait is only 2 years.

      Hope this helps?

  40. julie on June 7, 2017 at 5:48 am

    We had a chapter 7 in August 2013 we are shy of 3 months to get a conventional loan we are in a time frame because we are renters buying a house that we live in and the seller is only giving us 60 days when are lease is up so we had to go to a FHA loan we have 20% down payment thou and we were told we can refinance later to get the PMI taken off when we refinance to a conventional loan, is there anyways for us to eliminate the PMI loan since we are so close to the 4 year mark and we have great credit too

    • Scott Schang on June 7, 2017 at 10:34 am

      Hi Julie,

      Your timing is so close, it seems like you should be able to negotiate with the seller to give you time to close after the 4 year mark.

      The 1.75% upfront mortgage insurance premium is going to be about the same as the fees on a hard money loan. It’s a close call. I guess it just comes down to the math, and the resourcefulness of your lender.

      I’ve had this type of situation before, and when I called the seller as the lender, and explained to them the reason for the timing, they were pretty open to working with us.

      Are you working with a lender yet? If not, shoot me an email to scott@findmywayhome.com and let me know what State you’re buying in. I have a handful of very resourceful and experienced lender friends around the Country. I might be able to hep point you in the right direction.

      Hope this helps?

  41. Zack on June 6, 2017 at 7:48 pm

    Trying to purchase a new home. Filed Chatper 13 in 2009 it was dimissed/converted to Chatper 7 in July 2011 and discharged in October 2011, I surrendered my home in the BK. The home has not been foreclosed, I do not live in the home, the loan has been sold 4 times.
    I got approved in January for a conventional mortgage, two weeks ago they said the AUS for fannie mae is giving me a refer with caution. Nobody will manually underwrite the loan.
    My situation is this – DTI = 3% ( no debt ), credit 703, have down payment in hand ( house I am trying to buy is $458,000 and I am putting $40,000 down payment) and make over $15,000 a month. I meet every guidline I can find. The only thing I can think of is because my name is still on the deed that is why I am not getting approved.
    I have called fannie mae and so has my lender, none of them can figure it out, they all say there is no reason that I do not get an approved/eligible from AUS.
    What are my options if any? need help fast my house is ready to move in, I am ready to move in.

    • Scott Schang on June 6, 2017 at 8:42 pm

      Hi Zack,

      Yes, you’re exactly right, it’s because you still own that home. Have you attempted to do a deed in lieu or short sale on the home?

      What State are you trying to buy in? I have a couple of lender friends that have had success getting approved for conventional financing while still being on title of a home that you do not live in.

      I’m surprised you could not get an approve/eligible though. You’re not going to find any lender that will do a manual underwrite on a conventional loan, that pretty much doesn’t exist from my experience.

      Honestly, your best bet it to try to short sale or do a deed in lieu on that home. That would solve all of your problems.

      If you would like, shoot me an email to scott@findmywayhome.com and I’ll see if I can get you pointed in the right direction.

      Hope this hopes?

  42. Diane on June 6, 2017 at 2:02 pm

    I’m so glad I found your website! My husband and I had a short sale two years ago on a rental property. Our primary residence has no mortgage. We would like to apply for a home equity loan against this house and make it a rental and purchase another home to live in where we will be able to put down more than 20%. Our FICO scores are in the low 700s, our debt to income ratio is 18% and our income range is $150-160k. Do we have a chance to obtain a home equity and a conventional loan?

    • Scott Schang on June 6, 2017 at 6:28 pm

      Hi Diane,

      I can definitely help. There are a few problems with your scenario here. First, most HELOC lenders are going to require a minimum of 4 years from the short sale. Second, a HELOC is only available on an owner occupied property. I actually just went through this with another reader. I was sure that we could get a HELOC on an investment property….I was wrong. That said, you have several options.

      With FHA financing, you would be eligible in 3 years from the short sale. FHA financing is only for owner occupied financing, so if you’re going to rent it out right away, that’s probably not a great option.

      With conventional financing, you could refinance as non-owner occupied to take the cash out, then use a conventional loan for the purchase of the new home. This is the absolute best way to do this…but it’s 2 years out.

      The “Now” option is to use portfolio loans to take cash out of your home, and buy the new one. At the loan to value that you’re looking at , and your credit score, this should not be such a bad option. The rates and fees are higher, but when you weigh that against doing nothing, I think the math would make sense.

      The good news is, you only have to keep to keep the portfolio loan until you’re eligible for a conventional loan in 2 years.

      If you want to shoot me an email to scott@findmywayhome.com, let me know what State you’re buying in, and I can introduce you to someone that can help run some numbers so you know what your options look like on paper.

      Hope this helps?

    • Diane on June 29, 2017 at 10:32 am

      Hi Scott
      I appreciate your feedback. I live in Mesa, AZ. I look forward to your recommendation who I should speak with regarding portfolio loans.
      Diane

  43. Tim on June 6, 2017 at 10:44 am

    I’m looking for the best option for a purchase loan given the following circumstances. Also, is a construction loan a possibility as well?

    Situation:
    -2 years after short sale (with delinquency)
    -current credit score 680+
    -Income of 200k+
    -10% or 20% down is fine

    • Scott Schang on June 6, 2017 at 11:02 am

      Hi Tim,

      I personally have not had any experience with construction loans that would allow this specific scenario. FHA is going to require a 3 year wait from the short sale, conventional if 4 years. If the mortgage was included in a bankruptcy, the conventional waiting period might be shortened. The delinquency prior to the short sale is irrelevant.

      You could most certainly qualify for a portfolio loan with between 15% and 20% down with only 2 years after a short sale. Perhaps it’s a stepping stone before you meet the waiting period for building your own home.

      If you have not spoken to anyone about this option, I might be able to point you in the right direction.

      Shoot me an email to scott@findmywayhome.com and let me know what State you’re trying to buy in. I will see if I have any contacts that I can introduce you to.

      Hope this helps?

  44. Essie on June 5, 2017 at 9:16 pm

    We are looking to buy after a chapter 7 BK/Foreclosure. We have met the waiting period for our BK, but was told that although the mortgage debt was listed in the Chapter 7 that the property was not “surrendered” and that means they have to go off the foreclosure date. Is this correct?

    • Scott Schang on June 5, 2017 at 10:17 pm

      Hi Essie,

      That depends completely on the type of financing you’re applying for. If you are applying for a FHA loan, then yes, you have a 3 year wait from the date your name was removed from title if it was by short sale, deed in lieu or foreclosure.

      Conventional financing will allow you to buy in 4 years from the discharge date, and ignore the foreclosure date. You do not have to “surrender” the property in the bankruptcy, and even if you did, it would not impact these timelines at all.

      When was your bankruptcy discharged?

  45. Floyd on June 5, 2017 at 3:14 pm

    Question we had our house up for sale on MLS and it didn’t has quickly has we have hope. So we decided to refinance the house to updated some of thing that need to updated and to stay here longer. Our Lender said that because our was being refinancing under FHA we have to wait 6 months from time we pulled it from MLS. Is that true under FHA quideline. If so can we do it under conventional loan?

    • Scott Schang on June 5, 2017 at 7:10 pm

      Hi Floyd,

      I don’t know that FHA will not allow this. You might want to get a second opinion, that might be an overlay by the lender. Conventional financing only requires that the home no longer be listed for sale, but may limit the amount of cash out / loan to value if it’s ben less than 6 months.

      If you would like, shoot me an email to scott@findmywayhome.com with more detail about your situation and I’ll see if I can introduce you to someone that can help.

  46. Jan on June 5, 2017 at 1:14 pm

    My husband and I filed chapter 7 bankruptcy which was discharged in April 2013. Our mortgage was not reaffirmed in the bankruptcy but we remained in the house and made payments through October 2015. My husband died in February 2016 and the mortgage company began foreclosure in March 2016. The property was not sold by them until May 2017. My credit scores are in the low 700’s and I have good income and no late payments since the bankruptcy. What, if any, are my loan options as of today to buy a house? I’ve gotten very different opinions from different lenders.

    • Scott Schang on June 5, 2017 at 1:31 pm

      Hi Jan,

      I’m so sorry to hear about your hardships, I can only imagine how difficult that must have been for you.

      It pleases me to be able to tell you that Fannie Mae and Freddie Mac guidelines will allow you to buy using conventional financing in 4 years form the discharge of the bankruptcy, and ignore the foreclosure date.

      There are still not many lenders that know these guidelines or are willing to learn them. If you would like, shoot me an email to scott@findmywayhome.com with the State you would like to buy in.

      I can introduce you to a lender friend of mine that has experience with these guidelines.

      Hope this helps?

  47. Mila on June 5, 2017 at 1:08 pm

    Great website! It is good to know we aren’t alone with our unique situation. Due to the difficult divorce my credit cards had to pay for the attorneys. This left me with no choice but to file bankruptcy. It was granted over 2 and a half years ago. My house was included in the bankruptcy. We had a contract for over 5 months for a short sale and the bank dragged their feet and we lost the buyers because of it. It foreclosed August 2016. We were very fortunate to get into a unique lease/purchase home which we love and is perfect for my 4 kids and I. Am I eligible for a mortgage after August 2017? Are there any lenders out there that would consider that? I am veteran teacher from CT and makes a decent salary for over 25 years. The owner of the lease/purchase has been wonderful to us and we will do anything we can to close the deal as soon as we can. Any suggestions you have would be very helpful and appreciated. Thank you!

    • Scott Schang on June 5, 2017 at 1:28 pm

      Hi Mila,

      FHA guidelines would allow you to buy 3 years from a bankruptcy, but will require an additional 3 years from the foreclosure date.

      Conventional guidelines will allow you to buy 4 years from the discharge of the bankruptcy, and you can ignore the foreclosure date.

      It sounds like August 2018 is going to be the soonest you can buy using Fannie Mae guidelines.

      Hope this helps?

  48. Laura on June 5, 2017 at 9:34 am

    I want to be a consignor on a house with my son-in-law as primary but I had a chapter 7 in 2009 and foreclosure that was filed in 2009 but judgment was 2013. Lender told my daughter if this shows up on my credit report I cant be cosign or. Any advice about this?

    • Scott Schang on June 5, 2017 at 10:49 am

      Hi Laura,

      That lender is not giving you an accurate answer. You have met the waiting periods for both FHA and Fannie Mae. If you would like a second opinion from a lender that has experience with these guidelines, shoot me an email to scott@findmywayhome.com and let me know what State you’re buy in.

      Hope this helps?

  49. Sally on June 4, 2017 at 8:50 pm

    Hi Scott. I had a short sale in 2013 and my current credit score is 764. Am I able to buy a house now? Would my down payment and interest rate be affected?

    • Sally on June 4, 2017 at 8:54 pm

      It was an FHA loan and I’m in Ohio

      • Scott Schang on June 4, 2017 at 10:20 pm

        You are absolutely allowed, and eligible to apply for another home loan. FHA is typically a 3 year waiting period following a short sale. Since your loan was a FHA loan on the short sale, the 3 year waiting period would begin when HUD pays the mortgage insurance claim by the lender. This usually extends the timeline out a few months from the short sale date.

        Conventional financing allow you to buy in 4 years from a short sale. Which is right about where you’re at.

        FHA requires a minimum 3.5% down payment, Conventional is as low as 3% down, but 5% is more common.

        I have a lender friend that has a lot of experience with these guidelines and can help in OH. Let me know if you would like an introduction?

        Hope this helps?

  50. Frank on June 4, 2017 at 10:27 am

    Hello Scott, I have been in pre-foreclosure on an investment property since 2009. Mine and my wifes credit scores are in the mid 700s. we have a down payment and good income. Can I qualify for a Portfolio loan or any loan? There is nothing on my credit report about any missed payments since 2013.

    • Scott Schang on June 4, 2017 at 10:55 am

      Hi Frank,

      Did you file a bankruptcy at any point in the past? Why isn’t the mortgage reporting? This is a tough one. The short answer is “Yes”, There’s a lender that would lend under these circumstances, but it’s not going to be pretty. You’ve got to get you name off that title and you’ll be in a lot better shape.

      Have you attempted to negotiate a deed in lieu? Or a short sale? If you leave it up to the bank to foreclose, you’ve seen where that gets you..strung along for 8 years.

      Shoot me an email to scott@findmywayhome.com and let me know where your’e trying to buy. I have some very creative friends around the Country, and I’m sure I can at least get you pointed in the right direction.

      Hope this helps?

  51. Natalie Luna on June 3, 2017 at 7:22 pm

    Hello Scott-

    We are in Arizona. Last year, Aug 2016, our short sale closed. So it hasn’t been quite a year but we are currently renting a lovely home from a nice family. They want to sell and have offered us the house. They are willing to do a private sale or hold the note until we qualify for a loan. We have a small down and our credit scores are 650 and 700. They are great to work with and I just love this home. It feels like mine. What would you advise, in your professional opinion? And what sort of steps should we take if we take this option? I appreciate your time. Thank you!

    • Scott Schang on June 3, 2017 at 11:42 pm

      Hi Natalie,

      You may want to get a real estate professional or an attorney to help you draw up the purchase contract. The sellers can carry a private note if they would like.

      You would be eligible to buy using FHA financing in August 2019. You really only need a 2-3 year note from the seller and you can get them the rest of their money when you refinance.

      Does this help?

      • Natalie on June 6, 2017 at 9:43 pm

        Yes, that helps a lot. I already have the realtor who helped us with our short sale on this transaction. She agreed with your assessment. Thanks so much for your help!

  52. Vince on June 2, 2017 at 2:43 am

    Hello Mr. Schang,

    I own several rentals and would like to refi, pull out some cash and by more rentals. However, I short sod a rental December 2013 and was told I could not refi or apply for another until 7 years after the short sale. Is this true? If not, can you refer a lender that can help?

    • Scott Schang on June 2, 2017 at 8:38 am

      Hi Vince,

      There are a couple of answers to your question, both of them I think you’ll like.

      You would be eligible for conventional financing in 4 years from the short sale. That puts you out to December 2017.

      The work around to this is a portfolio loan. Use a portfolio loan now, and refinance into conventional loans with better terms after December.

      I can introduce you to a lender that can help. Send me an email to scott@findmywayhome.com with your contact information and a little more detail about what you’re trying to accomplish. Include addresses of the homes you would like to take cash out of, how much cash you need, and what you’re trying to buy.

      It’s really just going to come down to equity and income.

      Hope this helps?

  53. CME13 on June 1, 2017 at 10:29 pm

    thanks I’m always saying knowledge is key

  54. Bonnie Bruce on May 31, 2017 at 5:53 pm

    I live in NC and had to file Ch. 7 in 2010 (finalized Aug. 2010) due to loss of spouse and being laid off right afterwards in 2009. I did not reaffirm my Fannie Mae mortgage. I struggled until 2015 but could never attain the income level I had previously and foreclosure was finalized in July 2016. No deficit judgement and deed is in new owner’s name. Foreclosure is not on my credit report. I have seen 7, 4, 3 and 1 year waiting periods. I have a 680 credit score. I am retired now and with a fixed retirement stipend and Social Security I now have a larger income. When and how can I obtain a new mortgage and purchase a new home? Any info would be very much appreciated. Thanks

    • Scott Schang on May 31, 2017 at 7:48 pm

      Hi Bonnie,

      You would be eligible to buy using a conventional loan today. I am going to make an introduction to a lender friend of mine that can help in NC.

      Hope this helps?

  55. Cipriann Echols on May 31, 2017 at 4:14 pm

    I was just told a loan due to short sale because it no longer shows on my credit report however the lender said in order to approve it ..it would have to be put back on my credit have you ever heard of such?

    • Scott Schang on May 31, 2017 at 5:00 pm

      Hi Cipriann,

      A short sale does not have to be added back on your credit report. If the short sale occurred inside the waiting period required to be eligible to buy again, then it is a public record, and the lender will get the information they need from public records.

      If you would like an introduction to a lender that has experience with these guidelines, shoot me an email to scott@findmywayhome.com and I can introduce you to someone.

      Hope this help?

  56. Lisa on May 31, 2017 at 3:22 pm

    My husband filed chapter 13 & the foreclosure was included. It was sold at sheriff’s sale on 1/11/17. The chapter 13 will be paid off in september, 2017.when will we be eligible to apply for another mortgage loan? Thanks in advance for your help.

  57. Oscar on May 29, 2017 at 1:29 pm

    Hi Scott, I wanted to see if you can answer a question for . I live in California, I had 2 homes back in 2009. I rented one of my home but unfortunately the renter did not pay the mortgage and in 2010 I was behind on my mortgage and put it up for short sale in 2010. As I review the court records, it’s states that the home was Sold: Foreclosed to Lender on 2/8/11 and then is states Sold: most likely a 3rd party on 8/1/11. In terms of the 7 year waiting period, when does it start? when sold to the lender on 2/8/11 or 3rd party on 8/1/11.
    This would be awesome if you can help and totally appreciated.
    Thanks Scott
    Oscar

    • Scott Schang on May 29, 2017 at 5:05 pm

      Hi Oscar, I am a lender in California and can definitely help. Let’s take a look at the transfer deed. As long as it was a short sale, meaning you sold it to a third party (not the bank), your waiting period would be 4 years from the date that escrow closed and title was recorded in the new owner’s name.

      If you did not short sale the home, and the deed was transferred by sheriff’s deed as a foreclosure by the bank, then the 7 year waiting period begins on the date of the sheriff’s deed.

      If you shoot me the address to scott@findmywayhome.com, I can look it up and narrow down the time frame and method of transfer for you.

      Hope this helps?

  58. Vicky on May 28, 2017 at 3:53 pm

    My Bk was finalized in Sep 17, if applying for FHA what is the max jumbo loan amount you can borrow?

    • Scott Schang on May 28, 2017 at 8:15 pm

      Hi Vicky,

      If your bankruptcy was discharged in September 2016, there is a 2 year wait from the discharge of the bankruptcy before you’re eligible to use FHA financing. If there was a mortgage included in the BK, and if you default on the mortgage, there is a separate waiting period with FHA, which is 3 years form the date your name is removed from title.

      FHA does not allow for “jumbo” loan amounts, but in some Counties, FHA allows for a higher balance loan amount than in other Counties. As an example, I am located in California. In certain Counties, FHA will allow as high as $636,150.

      If you would like to email me details of our situation, I can give you a more accurate timeline and answer to your question.

      My email is scott@findmywayhome.com – Hope this helps?

  59. Alex on May 25, 2017 at 9:47 pm

    Great info here. Question on jumbo loans in California. Can I obtain one with a shortsale on record 6 years a ago with 20% down and good credit since? Also would a consigner be an option to get a conventional jumbo loan with 20% down or will more down be needed regardless of a cosigner?

    • Scott Schang on May 25, 2017 at 10:51 pm

      Hi Alex,

      Yes, there are investors that will allow for Jumbo financing with a short sale 6 years ago with 20% down. You could also do a conventional high balance as well. A cosigner could be an option with a conventional high balance loan as well, and you may not need 20% down.

      I am a lender in California, and can help with either of these scenarios. If you would like to send me an email to scott@findmywayhome.com, I would be happy to help you explore any of these options.

      Hope this helps?

  60. Adam on May 24, 2017 at 8:55 am

    Hi Scott
    I abandoned a house in early 2013 in IL ,It was an FHA loan. The house was taken by bank and sold in Sept 2013. I called quicken loan in 2015 and they said I will be eligible Sept 2016. Now they say I am eligible in Sept 2017 with 6- 7% APR.
    Since I abandoned and did not follow up, I don’t have any documentation on what actually happened and the dates. Is there any department that I can contact to get more details in IL or should I contact bank of america.

    • Scott Schang on May 24, 2017 at 9:22 am

      Hi Adam,

      That doesn’t make any sense, other than this is a typical response from these big box lenders that just send you to a call center somewhere to speak to someone that doesn’t know the guidelines.

      The sheriff’s deed would be a public record, and would show the date that your name was removed from title.

      Typically, you are eligible for another FHA loan in 3 years from the date your name was removed from title (foreclosure), however, if the foreclosed mortgage was a FHA loan, your 3 year waiting period would begin from the date that the mortgage insurance claim was paid by HUD to the previous lender.

      This usually takes place a few months following the foreclosure, but I’ve seen it take longer.

      What doesn’t make sense is the 6-7% APR quote. The APR on a FHA loan is always higher than it should be because it factors in the cost of the upfront mortgage insurance. That seems like an inaccurate number.

      If you would like to email me the address to the home that was foreclosed, I can try to look up the property in public records and see if I can nail down that date for you. My email is scott@findmywayhome.com

      Are you trying to buy another home in IL? If so, I have a loan officer friend that I can introduce you to that has a lot of experience with these guidelines. We would have to determine when the mortgage insurance was paid, but I assure you that you will be talking to an experienced loan officer that knows what they are talking about.

      Hope this helps?

  61. Denise on May 23, 2017 at 4:08 pm

    I am getting mixed answers on the following two questions first our chapter 7 bankruptcy was discharged in November 2013 hour foreclosure was included in the bankruptcy it even states that in my credit report and I have a credit score of 658 and I am being told That I have to wait four years from when the foreclosure sold in April 2016 from the looks of it above I would qualify for a Fannie Mae loan in November 2017 which answer is correct? also my legal separation was finalized in April 2017 and I’m being told by some that my ex would have to be on the mortgage and deed because we are legally still married and by others that he would have to just sign a quit claimdeedit also states in our marriage settlement agreement that any property acquired after the separation date which was June 2016 neither party have any rights to I can’t seem to get a definite answer on either two of these questions? I Live in California and I am looking to Buy in California or possibly Oklahoma which is also a community property state and recognizes legal separation’s any help would be much appreciated

    • Scott Schang on May 23, 2017 at 5:16 pm

      Hi Denise,

      Conventional guidelines will allow you to buy 4 years from the discharge of the bankruptcy, regardless of when the foreclosure occurred.

      FHA guidelines require a waiting period of 3 years from the foreclosure date.

      I have a lot of experience with these guidelines (as you can tell), AND I am a lender in California, so I can help. If you decide to buy in OK, I have a lender there that I can introduce you to that also has experience with these guidelines.

      As far as the separation agreement goes, that’s going to depend on how the separation agreement is drawn up. At the end of the day, that’s a call that a title company will make, because it directly affects whether or not you can hold clear title in your name only.

      If you can email me a copy of your separation agreement, I will run it by a title officer and get their opinion. If they say they will issue title insurance, then you’re good to go!

      My email is scott@findmywayhome.com – Hope this helps?

  62. Michelle on May 23, 2017 at 1:27 pm

    I am trying to buy a home after a short sale 2 years ago. We have established good credit. My husband’s scores are over 700. Mine is around 660. He had a loss of a job previously. He has a good job as do I. Any suggestions of lenders that can help us? We pay more for rent than we would a home.

    • Scott Schang on May 23, 2017 at 1:38 pm

      Hi Michelle,

      At 2 years from a short sale, you’re most likely going to have to look at a portfolio loan option. A portfolio loan is going to require a larger down payment, and the interest rates and closing costs are higher, but you’ll be able to refinance into an FHA mortgage once you hit the 3 year mark, or a conventional loan at 4 years.

      If you would like an introduction to a lender that has experience with these types of programs, feel free to shoot me an email to scott@findmywayhome.com with your contact information and where you’re buying. I can try to point you in the right direction.

      Hope this helps?

  63. Helen in ohio on May 20, 2017 at 4:13 pm

    Hi Scott,
    My husband and I filed ch. 7 in10/14 and discharged 1/15. Our home was included in bk but we have continued the payments, never reaffirmed. If we were to “walk away” now, when could we get another FHA loan? Does the clock begin at discharge or start all over with a title transfer ? We are in Ohio. Thanks!

    • Scott Schang on May 20, 2017 at 5:56 pm

      Hi Helen,

      If you would like to use an FHA mortgage, there is a 3 year wait from the date that your name is removed from title if you default on the mortgage, or sell the home for less than what is owed.

      If you are still making payments, you may have other options. As long as the payments are on-time, you may buy using FHA 2 years from the Bankruptcy discharge, as long as the new home is 100 miles or more from your current home.

      If you can sell the home as a short sale, or negotiate a deed in lieu of foreclosure, both of these options are better than “walking away”. If you simply stop making payments and walk away, it could take years for the lender to foreclose, and you would be at the mercy of their timeline.

      Hope this helps?

  64. Catherine Cahill on May 18, 2017 at 8:55 am

    I just dismissed my Chapter 13 so that my house sale will close escrow. Since the house is being sold and 13 dismissed, would I be able to obtain a conventional loan now? I will be able to clear my VA as soon as I have the HUD paperwork proving its sold which I would like to use again but now my credit score is the issue. It has been going up but not quite to 620 yet.

    • Scott Schang on May 18, 2017 at 9:07 am

      Hi Catherine,

      If you are applying for another VA loan, that’s going to be a manual underwriting approval that will depend heavily on the experience of the underwriter, and whether or not they sell loans directly to Ginnie Mae (VA).

      By selling the home, are you paying off the VA loan in full? It’s not a short sale?

      As long as you did not miss any payments on your current VA loan, and you made all of your Chapter 13 payments on time, there is a possibility that you could buy right away.

      It’s a long shot though. And your success is going to depend on being able to find a lender is willing to take the time to figure this out.

      If you would like, shoot me an email to scott@findmywayhome.com and let me know where you’re trying to buy. I’ll see if I know any VA experts that can manually underwrite a VA loan that would be willing to fight for this.

      Hope this helps?

  65. J Bailey on May 17, 2017 at 8:21 pm

    Can you please give a list of mortgage companies that offer portfolio loans for boomerang buyers,I had a deed in leui in 2016 and have no other bad remarks on my credit!

    • Scott Schang on May 18, 2017 at 9:02 am

      Hi Jetta,

      I don’t have a list necessarily, but I sent you an email introducing you to a lender friend of mine that is licensed in NC that has experience with portfolio loans.

      Hope this helps?

      • Emilio Mayor on May 27, 2017 at 8:36 am

        Could you also share with me a lender in NC? I had a short sale 12 months ago.

        • Scott Schang on May 27, 2017 at 9:48 am

          Hi Emilio,

          I’ve sent you an email with an introduction to a lender friend of mine that can help in NC. Unless the mortgage was discharged through a bankruptcy, your only option right now is a portfolio loan. While you may be eligible, you’ll just have to see if it makes sense. The down payment, interest rate, and closing costs are going to be higher than traditional financing until you can refinance into a FHA loan, 3 years from the short sale.

          Hope this helps?

  66. sonia on May 17, 2017 at 1:54 pm

    I had a short sale in 2013. Bk11 in 2011 … I was just preapproved for a home loan up to 380K. My lender said they would not finance me for a forclosure or short sale. Why would that be?

    • Scott Schang on May 18, 2017 at 9:00 am

      Hi Sonia,

      That doesn’t make any sense. It doesn’t matter if the home you’re buying is a short sale or foreclosure.

      If you would like, I can introduce you to a lender friend of mine that has experience with these guidelines.

      At the very least, a second opinion will not hurt.

      If you would like an introduction, shoot me an email to scott@findmywayhonme.com and let me know what State you’re buying in.

      Hope this helps?

  67. Angie on May 16, 2017 at 6:10 pm

    Hi Scott,
    I filed chapter 7 bankruptcy which discharged in 2013. My home was to be included in the bankruptcy which was why I filed, but my lawyer marked that my intention was to retain the home on the petition to allow the mortgage company to come up with a workable option, when they didn’t then I didn’t re-affirm the home. I am told the home was included in the bankruptcy, but because the petition doesn’t say surrender the home and the house went through foreclosure, which just happened 3.5 years later I am told I have to wait 7 years to buy a new home because it looks like I had a separate foreclosure. What are our thoughts on that? My bankruptcy attorney has retired and I spoke with another attorney who recommends we re-open the bankruptcy to mark the intention was to surrender the home so it can be proven the home was included in the bankruptcy which then I could get a loan at 4 years from the discharge of the bankruptcy. However, he is not guaranteeing the judge will approve.

    • Scott Schang on May 16, 2017 at 9:45 pm

      Hi Angie

      As long as the foreclosure took place after the filing of the bankruptcy, you can absolutely buy using conventional financing in 4 years from the discharge of the bankruptcy. That lender is wrong.

      It is not necessary for you to reopen your BK case and change the intention. The lender that told you that does not have any experience with these guidelines and did not tell you the truth.

      Send me an email to scott@findmywayhome.com with the State you’re buying in, and I can introduce you to someone that can help.

      Hope this helps?

  68. Linda L on May 16, 2017 at 8:56 am

    hi Scott,
    I did a deed in Lieu on an investment property. I did not file bankruptcy. It took 17 months to complete and was processed in december 2016. How long do I have to wait before I can get a mortgage?

    • Scott Schang on May 16, 2017 at 9:54 am

      Hi Linda,

      You could buy a primary residence using FHA financing in 3 years from the date your name was removed from title. You can use Conventional financing to buy either a primary residence or another investment property in 4 years from the date that your name was removed from title.

      Hope this helps?

  69. ValeRie Dulle on May 16, 2017 at 7:50 am

    I had a preforclosure 5 years – my home never went into foreclosure.
    This home currently has a FHA loan. I found another home I want to buy but my current home is not selling as quickly as I hoped. Can I get a conventional loan on the house I want to buy and make payments on both houses? My credit rating is in the high ‘600’s)

    • ValeRie on May 16, 2017 at 7:53 am

      How am I alerted when you reply?

      • Scott Schang on May 16, 2017 at 9:57 am

        You should receive a notice by email that I’ve answered your question. I will also email you separately to make sure you received my answer 🙂

    • Scott Schang on May 16, 2017 at 9:56 am

      Hi ValeRie,

      Yes, that’s definitely possible as long as you can afford both payments on paper. Is the preforeclosure on the home you own now? Or was it a short sale or deed in lieu on a different property?

      If you would like to shoot me an email to scott@findmywayhome.com with your location, and the answer to that question, I may be able to introduce you to a lender friend of mine that has experience with these types of scenarios.

      Hope this helps?

  70. Robin Nette on May 15, 2017 at 2:37 pm

    how do you find a portfolio lender? We let our house in Il. go into foreclosure and just walked away..we were able to buy another home cash and would now like to get a small mortgage or line of credit.. how long do we have to wait?
    Thank You

    • Scott Schang on May 15, 2017 at 3:11 pm

      Hi Robin,

      I can introduce you to a lender friend of mine that can help. Is the home in IL or did you move out of State?

      When did the home go into foreclosure? Was the loan included in a Bankruptcy?

      If you would like, you can email me directly to scott@findmywayhome.com with the answers to these questions and I’ll try to get you pointed in the right direction.

      Hope this helps?

  71. Margaret Jones on May 15, 2017 at 10:48 am

    I won a house on auction for $27000. I found out there was a 1st mortgage on the house later plus unpaid taxes etc. It is a beautiful home, however I got out of a Chapter 13 April 2016. I am trying to find financing for $140000 so I can get rid of the first mortgage on the house and have a little to do extra things around the house. The appraisal of the house is $180000. How can I find someone to finance quickly? The previous bank said they are going to pursue foreclosure on the first loan. Oh the Deed in in my name as of Dec 2016.

    • Scott Schang on May 15, 2017 at 11:16 am

      Hi Margaret,

      I’m a little stumped here. You purchased a home that has an existing lien that is in default? How was the seller able to sell the home without paying off the lien? Did you know that you had liens against the property when you bought it?

      I’ve introduced you to a lender friend of mine in your State that is going to try to figure this out for you.

      It’s definitely complicated though. FHA is the only traditional financing that will allow you to do a cash out refinance only being 1 year from the discharge of a Chapter 13. But because you’re paying off a mortgage that’s not in your name, and it’s in default, that’s where it gets tricky.

      If anyone can figure this out, Steven can. You should have heard from him by email by now.

      Hope this helps?

  72. Sheri Lynne on May 15, 2017 at 7:19 am

    I short sold my home and closed 4/2016 due to a job relocation (mortgage was delinquent for 12 months). My Fico score before the short sale was in the upper 700s, and after only 1 year since the short sale my FICO score is back up at 766. I have 30-50% down payment for a $350k house, no other derogatories on my credit, no other debt (except student loans). I am a VA vet, W2 employee with the same company since 8/2015. When should I be able to qualify for a mortage loan? Thank you.

    • Scott Schang on May 15, 2017 at 9:17 am

      Hi Sheri,

      VA guidelines do not specifically address the issue of short sale. With the information you’ve given me here, and because it’s been greater than 12 months since the last mortgage late payment, I think you would have a good shot at an automated approval.

      If you would like an introduction to a lender that can help, shoot me an email to scott@findmywayhome.com and I’ll see if can point you in the right direction. Let me know what State you’re buying in!

      Hope this helps?

  73. Rock Wootten on May 10, 2017 at 6:13 pm

    Confused by Freddie Mac exception for foreclosure. I was in the process of foreclosure but did a short sale with bank approval. I still owned home. Do I have to wait 2 years or more to buy conventional. Sale date was 1/15/2015.

    • Scott Schang on May 10, 2017 at 7:50 pm

      Hi Rock,

      The Freddie Mac guideline says that if you can get an automated underwriting approval, the wait is only 3 years. I am yet to see this happen. It’s not a written guideline, but Freddie Mac does confirm that it’s possible, I just have not been successful at getting one approved.

      Without an automated underwriting approval from Freddie Mac, you would be eligible in 3 years from the short sale for FHA, or 4 years from the short sale for Fannie Mae or Freddie Mac.

      Was the mortgage included in a bankruptcy by any chance? If so, that might shorten your conventional waiting period.

      Hope this helps?

  74. Kate in CA on May 9, 2017 at 10:54 pm

    My investment property foreclosed March 2016 and I am desperately trying to stay in my mortgage-free condo and refi the amount needed to pay state and federal taxes from the 1099 reporting the deficiency as ordinary income. I applied for a conventional loan and was declined due to being within 7 years of foreclosure, even though I have an 800+ credit score (lender never reported delinquency or foreclosure) and am employed with income and pension to cover monthly expenses, plus a retirement plan in future. I cannot wait 2 more years to become eligible for financing and will be forced to sell my primary residence unless I can find affordable financing quickly. Of course, my cost of living will increase significantly if I lose my home. I just turned 65, are there any strategies or programs for seniors that would work in my favor? Are portfolio loans my only option? I looked into tax relief and discharge of tax debt, but all doors closed because of my assets.

    Faced with overwhelming debt, yet unable to use my assets when I need them most, thanks for any suggestions you can offer.

    • Scott Schang on May 10, 2017 at 9:13 am

      Hi Kate,

      Yes, there is a way to do this. Please send me an email to scott@findmywayhome.com. I would like to get more information about your property and your income. I’m confident we can find a solution.

      Hope this helps?

  75. Jennifer WIlliams on May 5, 2017 at 10:47 am

    I PURCHASED A HOME 10 YEARS AGO FROM COUNTYWIDE MORTGAGE. THEY FOLDED WHEN THE REAL ESTATE MARKET WHEN BAD AND SOLD ALL OF THEIR BAD DEBT TO ANOTHER MORTGAGE COMPANY. WHAT GUIDELINES DOES A MORTGAGE COMPANY HAVE TO FOLLOW WHEN A MORTGAGEE AND MORTGAGE COMPANY ARE NEGOTIATING A PAYOFF-SETTLEMENT AMOUNT OF A 2ND MORTGAGE THAT WAS CHARGED OFF 9 YEARS AGO?

    • Scott Schang on May 5, 2017 at 12:55 pm

      Hi Jennifer,

      The holder/owner of the note has the ability to negotiate to any terms they would like. Was the home included in a bankruptcy?

  76. Ricky G. on May 1, 2017 at 10:55 am

    Hi there. I can’t find the 2017 CONVENTIONAL (FREDDIE MAC) GUIDELINES 4/3/2017 update anywhere on it’s website. Do you have the link to that? We’re trying to apply for a conventional loan, and we are close to 5 years after foreclosure. I just wanna get some sort of info to verify that such guideline exist. Thanks.

    • Scott Schang on May 2, 2017 at 9:37 am

      Hi Ricky,

      It is not a written guideline. I have to clarify that in the article. This comes from Freddie Mac directly that their automated underwriting system WILL allow the shorted waiting periods if there are enough compensating factors. I have not yet personally been able to get one approved with what I would consider very strong compensating factors.

      Freddie Mac and Fannie Mae do not necessarily have a list of rules. They have guidelines that are open to interpretation. Different underwriters and lenders take different approaches to how they interpret these guidelines.

      Was your foreclosure included in a bankruptcy by any chance? If not, I would try to submit it through Freddie Mac. If that doesn’t work, you’re looking at FHA financing until you reach the 7 year mark for the foreclosure using conventional financing.

      Hope this helps?

  77. Kristen on May 1, 2017 at 7:15 am

    Hi…… great article. Thanks. Can you just clarify for me when I would be able to buy again. I went through a divorce and unfortunately claimed chapter 7 bankruptcy which was discharged March 2015. I included my home in the bankruptcy but then we also short saled the home in March 2016 . The short sale does not appear on my credit report. When would I be able to purchase again via either a usda or fha loan. My credit has been re established and my credit score is now 720. Also where and how do I begin the process. Thank you

    • Scott Schang on May 2, 2017 at 10:10 am

      Hi Kristen,

      Using FHA financing, there is a 3 year wait from the short sale date. USDA will allow you to buy in 3 years from the bankruptcy discharge date, and ignore the short sale.

      Your short sale will not show up on your credit report, but it’s public record, and will come up during the application/approval process.

      Hope this helps?

  78. Harris on April 30, 2017 at 2:56 pm

    i filed a chapter 13 but had it disimmed, because i changed my mind. I had a short sale August of 2016. i have ben working to get the late payments taken off my credit report. its already been removed from one bureau report, but the bankruptcy is there as dismissed. if i can get mortgage completely removed, will i be able to get a mortgage loan before the three years waiting period? i have up to 20% saved already.

    • Scott Schang on April 30, 2017 at 6:47 pm

      Hi Harris,

      There are credit companies that will attempt to have those things removed, but they may be added back on at a later date because they were not reported in error.

      You would be eligible for a FHA loan in 3 years from the short sale date, or a Conventional loan in 4 years from the short sale date.

      With 20% down payment, a portfolio loan may be a temporary option until you meet those timelines.

      If you would like more information about these options, you can send me an email to scott@findmywayhome.com and let me know where you’re trying to buy. I can try to connect you with someone that can answer your questions.

      Hope this helps?

  79. Harris on April 30, 2017 at 2:51 pm

    i filed a chapter 13 but had it disimmed, because i changed my mind. I had a short sale August of 2016. i have ben working to get the late payments taken off my credit report. if i can get them completely removed, will i be able to get a mortgage loan.

  80. Ralph on April 28, 2017 at 12:21 pm

    Interesting and informative article. I am two years past a foreclosure due to health issues, have great credit scores and 100% retired from the military, federal service and drawing social security, around $6,000 in monthly income. I have yet been unable to find a lender that will preapprove a mortgage loan. Are there any lenders that will lend us money without charging high interest rates or closing costs. We have more than enough money to pay more than 20% down in a $250,000 home.

    • Scott Schang on April 28, 2017 at 3:49 pm

      Hi Ralph,

      If you are eligible for VA housing benefits, you can buy 2 years from a foreclosure. If the foreclosure was on a VA loan, that would probably mean that you do not have any eligibility left until you get that paid back.

      FHA is going to require a 3 year wait after the foreclosure. It’s possible that you could look into an extenuating circumstances exception using Conventional financing, but that’s extremely difficult to get this exception. It requires having a lender that is willing to do the work, collect all of the documentation, and tell the story to the underwriter to make the case.

      Other than those options, a portfolio loan is the only other option. Was the mortgage included in a bankruptcy by any chance? If so, that may shorten the conventional timeline.

      If you would like to shoot me an email to scott@findmywayhome.com, copy and paste this question, and let me know where you’re buying. I have very creative lender friends all over the Country. I might be able to point you in the right direction to get a second opinion.

      Hope this helps?

  81. Angie and Chris Kelly on April 27, 2017 at 11:33 am

    Thx for a great article. I have a question. Its been 5 and half years since we had a forclosure and bankruptcy and we are now ready to buy a home. WE have excellent credit, job history and cash flow and was approved to purchase a 228K home. The we got a call that because the previous mortgage co?? did not file the forclosure till 2015, we cannot buy a home. We were told 3 years. It was so hard and only happen due to a previous relationship, but we waited. Now we cant after finding our home because the previous company handling this for some reason didnt file it??? I dont get that. This is our livelihood. Is there anything we can do about it?? We moved out in 2012. They didnt do paperwork till 3 years after that?? WTH! And to this day, they never sold it. Its a beautiful home on Prime property

    • Scott Schang on April 27, 2017 at 2:16 pm

      Hi Angie and Chris,

      This is more common that you would ever imagine. Lenders can take years to foreclose on a home that hasn’t had payments made on it. It’s strange. Because lenders do this, Fannie Mae modified their guidelines to allow you to buy in 4 years from the discharge date of the bankruptcy, and ignore the foreclosure date, as long as your name is no longer on title.

      What State are you trying to buy in? If you shoot me an email to scott@findmwywayhome.com, I can introduce you to a lender that has experience with these guidelines. I think you are eligible to buy now!

      Hope this helps?

  82. Rosemarie T on April 27, 2017 at 9:04 am

    Hi Scott, BOA was included in my Chapter 7 discharge in August 2013. I did a deed in lieu of foreclosure in March 2015, and the deed clearly states that BOA will NOT file foreclosure proceedings in consideration for the deed to the property. Can I qualify for a down payment assistance program and a mortgage loan?

    • Scott Schang on April 27, 2017 at 1:48 pm

      Because you discharged your mortgage in the bankruptcy, there it does not matter whether you lost the home to short sale, deed in lieu or foreclosure. Neither would show up on your credit report, and the waiting period would be the same.

      That said, it simply depends on the guidelines for the assistance program you are applying for. Most programs will use the underwriting guidelines of the first mortgage.

      To use a FHA first mortgage, you have a 3 year wait from the date your name was removed from title. If the mortgage on the deed in lieu was a FHA mortgage, the wait would be 3 years from the date that the mortgage insurance claim is paid.

      For conventional financing, there is a 4 year wait from the discharge of the bankruptcy, which would make you eligible on 8/28/2017.

      What State are you trying to buy in? If you would like, I can introduce you to a lender that has experience with these guidelines and may be able to help with the approval process?

      Hope this helps?

      • KD on May 5, 2017 at 9:12 am

        HI I’m in Maryland and Im have sort of the same problem. I file bk and discharged 2013 so I’m elig to purchase June 26, 2017 but I’m still in my home FHA have been paying on time but no relieved me of Mortg. Obligations. I can’t sell this current house do to the low value and its been a bit hard to rent. Can I still let it go and still be able to purchase coven in June 2017? I feel stuck.

        • Scott Schang on May 5, 2017 at 9:24 am

          Hi KD,

          I’m sorry to hear that you are unable to sell or rent out your home. If the mortgage is greater than the value of the home, you can contact a real estate agent and short sale the property. You can also reach out to your existing lender and ask for a deed in lieu of foreclosure.

          One other option is that as long as you continue to make your payments on time, and if you can afford both payments, you can use a conventional loan to buy a new home while you are figuring out what to do with the old one.

          If you stop making payments on the current mortgage, your only option would be to let them foreclose, do a short sale, or a deed in lieu of foreclosure.

          Hope this helps?

  83. Steven on April 26, 2017 at 6:16 am

    Good Morning- looking for clarification. Wife and I filed for bankruptcy Jan 2015 discharged May 2015. I had a condo in my name only that was discharged in Cb 7 bankruptcy and completed a short sale to get property out of my name March 2017. Will there be any loan options we could qualify for come this July since it will be past the two year bankruptcy period?

    Credit scores are roughly 706 for wife and 680 for myself – the area we are looking in ohio would be toughly less than 200k home with potential of 10% down.

    • Scott Schang on April 26, 2017 at 10:23 am

      Hi Steven,

      The 2 year waiting period is only if you are using a FHA loan to buy the new home. Unfortunately, FHA also requires a 3 year wait from the date of the short sale.

      The soonest you would be able to buy using traditional financing would be 4 years from the BK discharge using conventional financing. Conventional financing would not require a separate waiting period for the foreclosure as long as it was included in the bankruptcy.

      It’s pretty confusing, I know.

      There is one other option, which is a portfolio loan. A portfolio loan would allow you to buy 1 day from foreclosure if you have 15% to 20% down payment. The rates and fees are a little higher, but it will get you into the home, and you can refinance into a lower rate and payment once eligible.

      If you think that the portfolio option is something you would like more information on, shoot me an email to scott@findmywayhome.com with more details about where you’re buying, and I can introduce you to someone that has experience with that kind of financing.

      Hope this helps?

  84. Holly on April 19, 2017 at 9:48 am

    Hi,

    My husband and I had short sale August of 2014. We are interested in buying again. We want to avoid PMI if possible. I see from what listed above, we could possibly go for freddie mac conventional loan? If so,do we need at least 20% down to avoid the mortgage insurance? Thank you!

    • Scott Schang on April 19, 2017 at 11:56 am

      Hi Holly,

      Getting an automated underwriting approval from Freddie Mac in less than 4 years from a short sale is going to depend heavily on the strength of your credit profile. 20% down payment, and good credit scores should give you a good chance of getting that approval.

      Technically, you can put less than 20% down, and use what is called Lender Paid Mortgage Insurance (LPMI), which rolls the mortgage insurance into the interest rate. While this does result in a slightly higher rate, it converts the non-tax deductible mortgage insurance into tax-deductible mortgage interest, and allows you to put less money down.

      If you are not already working with a lender, I would be happy to introduce you to someone that has experience with these guidelines and can help. You can send me an email directly to scott@findmwywayhome.com, with the State you’re buying in, and I can try to point you in the right direction.

      Hope this helps?

  85. Kim on April 19, 2017 at 8:31 am

    Hello,
    My house went into foreclosure in December 2012. I am currently a homeowner without any mortgage loan outstanding. We would like to sell our current home and build a new one. Can I apply for an FHA or Conventional home loan? I do not have any outstanding debt.

    • Scott Schang on April 19, 2017 at 9:53 am

      Hi Kim,

      You would be eligible for FHA financing in 3 years from the foreclosure. Unless the mortgage on the foreclosure was discharged in a bankruptcy, Fannie Mae is going to require a 7 year wait from the foreclosure date.

      Freddie Mac may allow you to buy again in 3 years from the foreclosure if you can get an automated underwriting approval.

      What State are you trying to buy in? I may be able to introduce you to someone that has experience with these guidelines and can help.

      If you would like an introduction, shoot me an email to scott@findmywayhome.com

      Hope this helps?

      • Kim on April 20, 2017 at 5:45 am

        Thank you, Scott. The mortgage on the foreclosure was not discharged in a bankruptcy. I’ve also sent you an email.

  86. Lucas on April 18, 2017 at 7:11 am

    On May 5th 2015 we settled with our second lender (balance at the time was 25K, and we paid 3k) and still kept our first, then we ended up selling the home a year later. Both me and my wife’s credit scores are in the 700’s. We have zero debt and enough for 20% down, do we still need to wait until May of 2018 to buy again? Thanks

    • Scott Schang on April 18, 2017 at 7:25 am

      Hi Lucas,

      That could depend on how the debt is reported on your credit report. If it is reported as “settled for less than the amount owed”, then it could be categorized as a short sale, and require short sale waiting periods. That would make you eligible for FHA financing in May of 2018.

      You always have the option of using a portfolio loan now, then refinancing into a traditional loan in 2018.

      What State are you buying in? If you shoot me an email with more details about your situation, I can see if I can point you in the right direction, and determine whether or not you would be able to buy now.

      My email is scott@findmywayhome.com

  87. Chris on April 9, 2017 at 7:50 pm

    Hi Scott, I saw that am now eligible for a conventional freddy / fannie loan after 2 years post chpt 7 discharge. It wasn’t until recently that i was told I can only apply for FHA loan. Under your 4/3/17 freddie mac update. I am currently still paying on my current home/auto/ secured debt, however they have not been reaffirmed and thus has allowed my credit to be about 700 even after only 1 yr 4 most post BK7. Should i get them reaffirmed the primary mortgage under my wife’s credit or mine? She doesn’t work so technically the loan would be under my name, as the primary. But i feel like that will tank my credit to increase the debt to income ratio? Please clarify the eligiblity for conventional loan after 2 yrs (post chpt 7 discharge) Also your opinion on reaffirming the loan to show history but not killing the credit score. Thank you so much Scott.

    Chris, in Los Angeles, CA

    • Scott Schang on April 9, 2017 at 8:07 pm

      Hi Chris,

      Using a Freddie Mac conventional loan might be an option, and FHA would certainly be.

      You cannot reaffirm a mortgage that was included in a bankruptcy except by refinancing it, and paying off the mortgage that was discharged.

      I am a lender in CA, and we specialize in these guidelines. If a conventional loan is the best option for you, I would love to try to get a Freddie Mac approval.

      Are you trying to refinance your current home? or Purchase a new one?

      I’ll send you an email with my direct contact information. If you would like to explore your options in more detail, let me know.

      Hope this helps?

      • Greg on April 12, 2017 at 3:15 am

        I went BK in 2014, and my mortgage lender did a reaffirmation on my mortgage. Did I misunderstand something as you said you can’t do this. I’m just wondering why the difference in opinion. Thx

        • Scott Schang on April 12, 2017 at 10:06 am

          Hi Greg,

          I’m not sure I completely understand your question? It is very rare that a lender would reaffirm a mortgage when you file for bankruptcy, but it can definitely happen. If you truly reaffirmed the mortgage, then you would have taxation or credit reporting protection if you default on the mortgage in the future.

          If you have continued to make your mortgage payments on time, then you are only subject to the waiting period from the discharge of the bankruptcy.

          Does this make sense?

  88. Caren on April 5, 2017 at 8:28 pm

    Hi,
    We had a chapter 7 discharged 2 years ago from a Fannie Mae loan and other debt. Our credit scores were near 800 at time of discharge. We just checked and they are both up near 700. We have steady jobs and income, (chose to walk due to being so upside down in prior home and no PMI lender options for refinancing). Would like to buy. Could potentially get 10% together. Are we crazy to try for a FHA loan? Our rental and payment history since the Chapter 7 is great, I believe one late payment when our some was hospitalized. Any guidance is appreciated.

    • Scott Schang on April 5, 2017 at 9:01 pm

      Hi Caren,

      What happened to the home that you included in the bankruptcy?

      FHA will require a 2 year waiting period from the discharge of the bankruptcy, AND they will require a 3 year wait from the date your name was removed from title if it was a short sale, foreclosure, or deed in lieu of foreclosure.

      Can you tell me more about what happened to the other property?

  89. Hope on April 5, 2017 at 9:13 am

    Mortgage debt included in Bankruptcy will go by BK discharge date, and and subsequent foreclosure will not count as an additional waiting period, as long as you are off title for any defaulted mortgages on a USDA Loan is that right?
    We were told we have to wait 2 years after Deed-in-lieu even though we are off the title for USDA Loan. My husband has 715 score. He is a Veteran, but we couldn’t do VA because our amount of eligibility has gone down not enough to buy house but even with VA we have to wait two years of deed in lieu. Can you tell me if we have to wait for two more years or are we able to buy now. We want to buy with the USDA Loan.
    Thanks

    • Scott Schang on April 5, 2017 at 10:43 am

      Hi Hope,

      USDA guidelines will allow you to buy in 3 years from the discharge of the bankruptcy, not the foreclosure date.

      If you would like, send me an email to scott@findmywayhome.com and I can introduce you to a lender with experience with these guidelines.

  90. Lisa on April 4, 2017 at 12:38 pm

    •Short Sale / Deed in Lieu of Foreclosure –
    •You may apply for a Conventional, Freddie Mac loan TWO (2) years after the sale date of your foreclosure or as determined by Loan Products Advisor (AUS)

    Does the above mean you can apply 2 years after EXTENUATING CIRCUMSTANCES or just 2 years after the recording of the Deed in Lieu and hope that compensating factors are good enough to get you approved? Are you still going to need 10% to 20% down or can you have a LTV of 95%?
    Quick snapshot of our circumstances:
    DIL recorded April 2015, income is now at least 25% higher than when events leading to DIL occurred, credit scores now 680-700 DTI (including current rent pmt amt) is approx. 30%.

    Is it worth contacting a lender if I don’t yet have 10% to put down?

    • Scott Schang on April 4, 2017 at 1:03 pm

      Hi Lisa,

      This is a tricky guideline because Freddie Mac will not say specifically what the minimum credit score or DTI need to be. Based on my experience, Freddie Mac likes higher credit scores, lower debt to income, and reserves.

      I think this would be worth it to contact a lender that is experienced with Freddie Mac underwriting guidelines. It can’t hurt to try.

      Freddie Mac only requires a minimum 5% down payment. Anything above that would be a compensating factor I would think.

      What State are you buying in? Shoot me an email to scott@findmywayhome.com and I can introduce you to a loan officer that has experience with Freddie Mac and can help.

      • Lisa on April 4, 2017 at 2:14 pm

        Thanks Scott, I will send a private email.

  91. JT on April 4, 2017 at 10:20 am

    So Fredie Mac does not use bankruptcy date if a home loan was included in the bankruptcy? They go by two separate dates?

    • Scott Schang on April 4, 2017 at 1:00 pm

      Hi JT,

      Freddie Mac will use the bankruptcy date. Only FHA and VA go by two separate dates.

  92. Jennifer N. on April 2, 2017 at 11:38 am

    Hi,
    I have wrote to you about a month back. I am getting some conflicting answers regarding my past situation that is only addressed I noticed in a few sites and only a few lenders seem to know about. I have also gotten differant answers when calling USDA and FHA directly and speaking to their underwriters.
    ok SO here it goes… I had a USDA short sale included in my chapter 7. The short sale was done Oct 2015 and the ch7 was discharged with the home Sept. 2015.

    So FHA website states 2 years for ch7 and 3 years for short sale. but…what if the short sale was included in the bankruptcy? There is really no mention of the combination anywhere in their guidelines.

    I have heard that then they would go by the bankruptcy discharge date and it would be 2 not 3 by a few people even the FHA and USDA but then the next time I call just to make sure the next people say no it is 3years.

    Now my lender is telling me it is 2? Does anyone really know the answer to this?
    Thank You!!

    • Scott Schang on April 2, 2017 at 11:50 am

      Hi Jennifer,

      There should be no confusion on this guideline unless it is from a loan officer that does not have much experience with your specific situation. FHA considers the bankruptcy and the short sale as two separate events. There is a 2 year wait from the bankruptcy, and a 3 year wait from the short sale.

      Both Conventional and USDA guidelines will allow you to use the bankruptcy waiting period, and ignore the short sale date. The conventional waiting period is 4 years from the bankruptcy discharge. The USDA waiting period is 3 years from the discharge of the chapter 7 bankruptcy.

      For USDA, I do not have personal experience with a short sale on a USDA loan, and then trying to get another USDA loan. If the short sale was on a FHA loan, and you were applying for a new FHA loan, the 3 year waiting period begins from the date that the mortgage insurance claim is paid by HUD to the lender.

      If your lender is telling you that you can get a FHA loan 2 years after the bankruptcy, and you can ignore the short sale, that lender is wrong. You would fall victim to the hundreds, or maybe even thousands of others that I have talked to on this site that were told that they qualify, only to have their hoped crushed just before the close of escrow when the underwriter discovers the mistake that the loan officer made when they told you that you are eligible.

      Your only option at this point would be a portfolio loan that would allow a shorter waiting period. In the case of using a portfolio loan, you would only keep this financing until you meet the FHA or USDA waiting period, then you would refinance into better terms.

      If you shoot me an email to scott@findmywayhome.com, I can introduce you to a lender that has experience with all of these guidelines and will not give you conflicting or inaccurate answers.

      Hope this helps?

  93. Chi on March 30, 2017 at 1:25 am

    Hello Scott,
    Is it possible to be credit qualified for a loan based on income, credit and employment before the waiting period for the FHA loan is up?

    • Scott Schang on March 30, 2017 at 11:35 am

      Hi Chi,

      Yes, it is always possible to get pre-qualified using income, credit and employment. The waiting period is only clock, and does not affect any of the other factors that are considered when applying for a home loan.

  94. Sylvia on March 27, 2017 at 9:52 pm

    Hello. I completed a DIL tranfer in August 2014..due to 9 year employment lay off and recorded in Oct 2014…Im living in another state and would like to purchase with little money down…Credit score is 648…Do i qualify for an FHA loan when and what do i need to do?

    • Scott Schang on March 28, 2017 at 10:53 am

      Hi Sylvia,

      You would be eligible for a FHA loan in October 2017, 3 years from the date that your name was removed from title.

      If you would like an introduction to a lender that has experience with these guidelines, shoot me an email to scott@findmwywayhome.com. It wouldn’t be a bad idea to start looking at your credit and income now to make sure you’re in a position to buy in October.

      Hope this helps?

  95. Rhonda on March 27, 2017 at 9:25 pm

    My husband and I had a chapter 7 bankruptcy discharged in June 2014 which included our house. However, the house didn’t get sold by the bank until June 2015. Would we be eligible to use the discharge date to apply for a home loan? If so, what type of loan would be the best for us? When can we apply for the loan? I’m a little confused about the waiting periods. We would need a minimal down payment. We reside in Florida in case you need that information.

    • Scott Schang on March 28, 2017 at 10:51 am

      Hi Rhonda,

      Yes, you could use the bankruptcy discharge date to buy a new home using a conventional loan. FHA financing is going to use the foreclosure date.

      Conventional waiting periods are 4 years from the discharge of the BK. FHA is going to be 3 years from the foreclosure.

      The downpayment requirements when buying after a foreclosure and bankruptcy are no different from buying if you did not have those hardships. Conventional will allow as little as 3% to 5% down payment. FHA is a 3.5% down payment.

      If you have as much as a 10% to 20% down payment, there are portfolio loans that have higher rates and fees, but will get you into a home now, and allow you to refinance into either conventional or FHA loan in a little over a year, in June of 2018.

      If that sounds like it might be something you would like to explore, I can introduce you to a lender that has experience with those programs in FL that can answer any questions you might have.

      Hope this helps?

      • Rhonda on March 28, 2017 at 7:03 pm

        Scott, Thank you for your quick response. I would also like to know if I would qualify for a usda guaranteed loan in June of 2017? All the research I’ve done seems to indicate that I can use the BK date (including this site 🙂 ) I’ve checked the location we’re thinking of and that seems to be fine. Our household income falls within the parameters of the $76k-101,450k. The BK was 6/2014 and the FC was 6/2015. You’ll make my day if you tell me it sounds like it will work! Our credit scores are in the upper 600’s. 8% Debt ratio. Let me know what you think. Thank you so much!

        • Scott Schang on March 28, 2017 at 8:18 pm

          Hi Rhonda,

          USDA guaranteed will allow you to use the bankruptcy discharge date, you’re absolutely correct.

          It will work – consider your day “made” 🙂

          • Rhonda on March 28, 2017 at 9:27 pm

            Thanks Scott! That’s great news. Now I’m curious about reasons to be declined for the usda loan. Will they decline my application just because I’ve had the bankruptcy and foreclosure? (after the waiting period) Except for the period in 2013 after my husband lost his job of 25 years (it took him 6 months to find a job at half his prior salary) and as the sole breadwinner in our household we had never had a single late payment or negative items on our credit reports. So, I feel pretty good about getting approved but I’d like to know some of the reasons they may decline us. I don’t want to get my hopes up if they’ll decline us because we applied for the mortgage immediately after the waiting period. Or any other reason I haven’t thought of yet. lol Thanks again for your incredibly helpful information!



          • Scott Schang on March 29, 2017 at 8:33 am

            Hi Rhonda,

            Just because you had the bankruptcy or foreclosure does not mean that you are treated any differently. As long as you meet the waiting period guidelines, you are eligible for the same loan as anyone that has not had a financial hardship in the past.

            There are many more factors that go into getting approved than just the waiting periods. As long as you meet all of the other qualifications, you should have no issues 🙂

            Hope this helps?



          • Rhonda on March 29, 2017 at 12:25 pm

            Hi Scott, So, today I called the bank on the list that gives the usda loans. The lender said that they wouldn’t use the bk date only the fc date to consider us for a loan. I asked him why they wouldn’t go by the guidelines of the usda program and he said they didn’t have to and nobody would be willing to risk their career by using the bk date. Is it really that dramatic? Makes me wonder why there are guidelines. In addition, he didn’t really care as to what our extenuating circumstances were in order to make a more educated decision. Is this a normal reaction from a lender after a bk and fc? Frustrated….



          • Scott Schang on March 29, 2017 at 1:42 pm

            Hi Rhonda,

            WHAT?! He wasn’t willing to risk his career? I almost just fell out of my chair. That person is an idiot (excuse my french).

            Send me an email to Scott@findmywayhome.com – I will introduce you to a loan officer that has experience with these guidelines and is willing to risk their career and follow the underwriting guidelines…..that is just unbelievable.

            Hope this helps?



  96. Lee on March 24, 2017 at 6:13 pm

    Long story short, chapt 13 both me and wife discharged after 3 yrs of payments. Forclosure was in bk. Chpt 13 discharge was may 2016. How soon can we get a mortgage and what type? We want a small 250k loan or less if we can find something and have 20% saved to put down.

    • Scott Schang on March 24, 2017 at 6:31 pm

      Hi Lee, when did the foreclosure take place? What was the date?

      FHA financing is available 1 year from the discharge of a Chapter 13, but will require a 3 year wait from the foreclosure. If the foreclosure took place after the filing of the bankruptcy, you could buy using Conventional financing in 2 years from the discharge date, and ignore the foreclosure date.

      If you have 20% down, and the foreclosure was more than 3 years ago, I would look at a FHA loan in May, and then refinance into Conventional to remove the mortgage insurance in May of next year.

      If you would like an introduction to a lender that is familiar with these guidelines, shoot me an email to scott@findmywayhome.com and I can make that connection.

      Hope this helps?

      • lee on March 25, 2017 at 12:15 pm

        Foreclosure will be 3 yrs gone jan 2018
        bk discharge will be 2yrs gone may 2018

      • lee on March 25, 2017 at 12:19 pm

        I sent you an email with my location and phone number

        • Scott Schang on March 25, 2017 at 12:41 pm

          Hi Lee, I responded to your email as well. I have a great introduction for you. I would definitely run the numbers on a portfolio loan option if you want to buy now. It would be a short 9 to 12 month investment to own now, and refinance into a traditional loan with a lower payment once you’ve reached your waiting periods.

  97. Tammy on March 23, 2017 at 5:48 pm

    Hi Scott,
    I am trying to find a blog for people purchasing after foreclosure and the real process and circumstances that surround their rebound home purchase. I cannot find anything. Just info on what you need to do to qualify. In short, lost our house to foreclosure due to bank not modifying after 12 months. Credit score was 450 after foreclosure. Fast forward 4 years to today. Current credit scores 620-630. Monthly income 10,000+ per month. Been with same employers for 18 and 12 years. Annual income with hubby seasonal unemployment is $118,000. Current debt is $2,000 monthly in cc, camper and motorcycle payment. No lates in 4 years. Looking to purchase home we have rented for he past 4 years for $150,000. Would like to get an FHA loan with 3.5 % dp. Just noticed medical collections for 4000 on our credit report and a 581.00 utility bill from 4 years ago that we had no idea was on our report. Will we qualify for and FHA loan? Everyone just wants to run our credit without a general idea of if it is even worth it. Do not want to dinge our credit with inquiries if we are a long shot! Any opinion you have or advice would be awesome. We have to purchase by June or the landlords are putting it on the market. Home should appraisal out around 165-171,000.

    • Scott Schang on March 23, 2017 at 8:37 pm

      Hi Tammy,

      Yes, you would be eligible for FHA financing in 3 years from the foreclosure. It sounds like you would be eligible based on everything you’ve stated here.

      What State are you buyin in? If you shoot me an email to scott@findmywayhome.com, I can introduce you to a lender that has experience with these guidelines and can actually help.

      Good job not letting people just run your credit without discussing your situation and helping you understand the path. We created this website to fight against those types of loan officers.

      I fixed all your cell phone typos – no problem 🙂

      • Tammy on March 23, 2017 at 8:47 pm

        Thank you for your quick response! I am currently working with a lender who has taken the time to really listen to me and my circumstances! We are currently going through the pre-approval process and should hear something by tomorrow! This has been a very stressful few years and I appreciate people like you that are out here helping others to understand all the hoops and requirements! I think after all is said and done I will start a blog to journal my process from the foreclosure to the rebound home purchase! It has been quite the roller coaster. Keep doing what your doing! You help restore faith in the lending community! That they aren’t all bad guys!

        • Scott Schang on March 23, 2017 at 8:53 pm

          That’s great news Tammy! There are a lot of really great lenders out there. Unfortunately, they are a little harder to find.

          They don’t have the same money that the big box lenders do to make loans sound “push button easy”

          Feel free to check back with us if your lender has challenges!

  98. Debbie on March 23, 2017 at 11:46 am

    Hi Jim, Filed bankruptcy in 2012. Did not include our home in the filing. We did not refi our home but have continued to make payments on time since original inception of our loan. Signed a deed in lieu in NC for a land loan signature loan. Looking to buy a home in NC now, after selling our home here. Credit is good 700. Looking to put down about 40,000 on an 80,000- 90,000 home in Clyde NC. Thanks

    • Scott Schang on March 23, 2017 at 1:44 pm

      Hi Debbie,

      If the land loan was included in the bankruptcy, and as long as your current home is not a short sale, deed in lieu or foreclosure, you would be eligible for conventional financing now. The waiting period is 4 years from the discharge of the bankruptcy, and you can ignore the deed in lieu on the land loan.

      Hope this helps?

  99. Rusty Jones on March 22, 2017 at 5:31 am

    Are there any construction loans or construction to perm loans available 1 year after chapter 13 discharge?

    • Scott Schang on March 22, 2017 at 8:39 am

      Hi Rusty,

      Yes, you can use a FHA construction loan 1 year from the discharge of a Chapter 13. If there were any foreclosures, short sales or a deed in lieu that occurred during or after the BK, that may affect your timeline.

      The challenge becomes finding a lender that specializes in FHA construction loans. What State are you buying in? If you shoot me an email with your location to scott@findmywayhome.com, I will see if I can introduce you to someone that I know has experience with this.

  100. Laura on March 17, 2017 at 7:35 am

    How can I find out the date HUD paid the mortgage company? The court case was closed may of 2014. But the public record does not show a transfer of the property till wells Fargo transfer to HUD. I received no paper work on this and can not receive and answer from the attorney who handled the case.

  101. Ralph SAT. on March 15, 2017 at 12:05 am

    Thanks for all the information you provide to the many people that are confused about mortgages

  102. Benjamin on March 13, 2017 at 8:30 pm

    What happens if after 4 years post bankruptcy and 2 years bankruptcy discharge the previous FHA loan covered under the bankruptcy has not foreclosed and/ transferred title? Credit is above 700 but hitting in CAIVERS because foreclosure never happened even though no debt owed due to bankruptcy.

    • Scott Schang on March 14, 2017 at 10:23 am

      Hi Benjamin,

      It sounds like the previous loan was FHA? There is more detail in your question that what you’ve addressed here, so I have a few questions to clarify your situation. You said 4 years post bankruptcy, and 2 years bankruptcy discharge? do you mean 4 years since filing BK, then it was discharged 2 years later?

      Also, do you know if the foreclosure ever took place? It is not uncommon for the waiting period to be delayed until after the mortgage insurance claim is paid by HUD after the foreclosure, however, that only becomes an issue if you are trying to buy a new home using an FHA mortgage.

      I am going to go out on a limb and assume that your bankruptcy was discharged 4 years ago, and maybe the foreclosure was 2 years? If that’s the case, you can buy with as little as 3% to 5% down payment using conventional financing in 4 years from the discharge of the BK, and ignore the foreclosure date.

      FHA is going to require a 3 year wait from the date that the mortgage insurance claim was paid by HUD.

      If you would like, shoot me an email to scott@findmywayhome.com and we can hash out the details of your situation and get your timelines dialed in. Sounds to me like you’re close to being eligible to buy again if you use a Conventional loan.

      Hope this helps?

  103. Sarah on March 13, 2017 at 2:10 pm

    Hi! So we were just discharged from chapter 13. We have good credit. Can we get a loan for a home in 4 months? Possibly a portfolio loan?

    • Scott Schang on March 13, 2017 at 4:23 pm

      Hi Sarah,

      With a minimum 20% down payment, it is possible to use a portfolio loan to buy now. You would be eligible for FHA using manual underwriting in 1 year from the discharge, and conventional financing in 2 years from the discharge.

      Was there a mortgage included in the BK by any chance? If so, that could affect your waiting periods with FHA financing.

      After 20% down, if you can still qualify with the higher interest rates, it could make sense to take the portfolio loan, then refinance it as soon as you are able to.

      If you’re interested in exploring this option, shoot me an email to scott@findmywayhome.com, let me know what State you’re buying in, and I can try to introduce you to someone I know that has experience with these programs.

  104. Elaine on March 12, 2017 at 11:39 pm

    I just sent you an email. Please reply. Thank you.

    • Scott Schang on March 13, 2017 at 10:13 am

      Hi Elaine,

      I received your email and you are definitely eligible for conventional financing now. FHA financing is available to you on the timelines that you mentioned, 3 years from the last housing event.

      I introduced you to one of the most experienced loan officers I know. He can definitely help.

  105. De on March 12, 2017 at 9:18 pm

    Hi we are thinking of doing a short sale because our payments just went up and now we can’t afford it. We tried to modify and they took off 30$ from a $500 increase. It doesn’t help. I have heard so many different things on how long it will take to buy again. Did it recently change to 4 years? I am in UT. Thanks!

    • Scott Schang on March 13, 2017 at 10:26 am

      Hi De,

      If the home was included in a bankruptcy, the waiting period could potentially start from the discharge of the bankruptcy. If there was no bankruptcy, then the waiting period before being eligible to buy using traditional financing is going to be different, depending on what type of financing you are applying for.

      For conventional financing, you are correct, the waiting period is 4 years from the date that your name is removed from title to the home.

      For FHA financing, you would be eligible again in 3 years from the short sale, unless the current loan is an FHA insured loan. If the current mortgage is FHA insured, then the 3 year waiting period begins from the day that the mortgage insurance claim is paid by HUD.

      Hope this helps?

  106. Jim on March 12, 2017 at 5:08 pm

    Hi – I had a short sale in august 2014, after my divorce. My credit has been perfect since and hovers around 680. My question is this; I want to build a custom home, close and move in august of 2018. The house will take 5-6 months to build. Is it possible to get qualified for a loan 5-6 months ahead of time and close right at the 4 year wait time, or like the FHA and VA loans, does the qualifying have to happen after the wait time.

    • Scott Schang on March 13, 2017 at 10:29 am

      Hi Jim,

      Was the mortgage included in a bankruptcy by any chance? If not, yes, it is possible to get “credit qualified” for a conventional loan. You would not be able to receive an actual full underwriting approval, but you could certainly get everything lined up.

      The challenge is that the short sale is going to show up on the credit report, and Fannie Mae’s automated underwriting engine, DU (Desktop Underwriter) will pick up the date, and prevent you from getting an automated underwriting approval.

      That does not mean that you could not get qualified based on income, credit and employment.

      Hope this helps?

  107. Casey on March 12, 2017 at 3:13 pm

    Hi Scott
    I had a bankruptcy in January ,2010 and my condo was included in the chapter 7 and deed in lieu was May , 2013.
    My husband bought a house in a September 2010 and added me to the deed.
    Is it possible for me to buy a second home for retirement?

    • Scott Schang on March 12, 2017 at 3:39 pm

      Hi Casey,

      Yes, you would be eligible now to buy a second home using Conventional financing. With a conventional loan, you are eligible to buy in 4 years from the discharge of the BK, as long as the mortgage was included in the discharge. You can ignore the deed in lieu date.

      Hope this helps?

  108. Heather Snell on March 11, 2017 at 7:59 pm

    Hi Scott,
    Just to be sure, our bankruptcy was recently discharged and we had no mortgage included. Mine was medical bankruptcy only, because we are married, my husband and I were both being garnished simultaneously by opposing collection agencies and we couldn’t afford it anymore. Anyway, we have to wait 2 years to apply for a home loan now? Is that just for FHA or is that for conventional as well? I feel like most of the information I have found is aimed at bankruptcy including a mortgage so I just want to be sure. Thanks!

    • Scott Schang on March 11, 2017 at 8:13 pm

      Hi Heather,

      FHA requires a 2 year wait after the discharge of a bankruptcy, USDA is 3 years, and Conventional is 4 years.

      Hope this helps?

  109. Elsie on March 11, 2017 at 2:50 pm

    Hi Scott,
    My husband and I filed for Chapter 7 bankruptcy in 3/2011. In the next few months the court asked us to switch to a chapter 13 plan due to our income being slightly above the line for qualifying for chapter 7. We have only very recently received our discharge and are looking to purchase a new home. We have good credit scores (low 700’s), 35k in our 401k, 60k in cash, and own the small home we live in (worth around 80k). Our combined income would be around 95k per year. We have $0 debt. Would we qualify for a portfolio loan? What is your recommendation for a family in our situation?

    Thanks!

    • Scott Schang on March 11, 2017 at 8:17 pm

      Hi Elsie,

      A portfolio loan is going to require a minimum 20% down payment, and the rates and fees are going to be higher than a traditional mortgage.

      That said, you just have to do the math to determine whether or not this is a viable option for you. The key factor in making this decision, is how quickly you can get out of it.

      Using FHA financing, you would be eligible to buy in 1 year from the discharge of a Chapter 13. Conventional financing (to avoid mortgage insurance) is a 2 year wait from the discharge.

      You could literally refinance into a FHA loan as soon as possible, then into a Conventional a year later to remove the mortgage insurance.

      If you need help making the decision of whether or not this is a good strategy for you, shoot me an email to scott@findmywayhome.com, with the State you’re buying in, and I can introduce you to a lender with experience with these programs and guidelines that I trust.

      Hope this helps?

  110. DIANE JAMES on March 8, 2017 at 10:16 pm

    Hi! Scott, My husband and I tried to buy a house last yr. at the Lake, he has retired. His credit is good now, after a bankruptcy in 2012; we moved out into a rental house, have been leasing for 4 yrs. now. with no late pymts. we were ready to move and were preapproved, 2 weeks before we were to move. than they called us and said no , they cant approve it thru FHA or VA or Conv. on account of the Sheriff sale on our house was sold a yr. later after our bankruptcy. WE did include it in the bankruptcy. They told us they had to go by the date of the sale of the property, on the sale. Which would be Jan 20, 2015; we were very disappointed, and they told us we had to wait 2 yrs. from that date. So now we have waited. We started looking again at house’s. Now the mtg. company is telling us we have to wait another yr. on acct. of Fha is 3yrs.now. before we can buy. and Conventionl 5 yrs. Is this true?

    • Scott Schang on March 9, 2017 at 10:59 am

      Hi Diane,

      Oh boy, you’re working with someone that really has no idea on what the guidelines are. FHA has always been 3 years from the date your name is removed from title, regardless of whether or not the home was included in bankruptcy.

      Conventional is 7 years, UNLESS the mortgage was discharged through bankruptcy. If the mortgage was included, and discharged, you could be eligible in 4 years from the discharge of the bankruptcy, and ignore the foreclosure date.

      What State are you trying to buy in? Shoot me an email to scott@findmywayhome.com and I will introduce you to someone that has experience with these guidelines and can help.

  111. Kay on March 8, 2017 at 11:46 am

    Hi Scott, We filed CH 13 in April 2009, it was discharged in March 2014. Our home at the time was included in the CH 13. It sold in Oct 2010. We are ready to purchase again, but are being told that we have to wait 3 years from the discharge before we can apply for an FHA mortgage and 7 years from the foreclosure to apply for Conventional. In reading your comments it appears we actually have to wait 4 years from the discharge to apply. Can you confirm?

    • Scott Schang on March 8, 2017 at 12:05 pm

      Hi Kay, all 3 of those timelines that you are being told are inaccurate. FHA requires a 1 year wait from the discharge of a Chapter 13 BK, and 3 years from a short sale, foreclosure, or deed in lieu. You are eligible for FHA financing now.

      Conventional financing allows you to buy in 2 years from the discharge of a Chapter 13, and ignore any foreclosure, short sale or deed in lieu as long as the mortgage was included, and discharged in the bankruptcy. You should be eligible for FHA financing now as well.

      What State are you in? Send me an email to Scott@findmywayhome.com and I can introduce you to a lender that has experience with these guidelines and can help.

  112. Linda on March 8, 2017 at 7:09 am

    Scott,
    Bankruptcy dismissed Feb 2015, house foreclosed Sept 2015…. does dismissed and discharge mean the same thing and when can I buy another house.

    • Scott Schang on March 8, 2017 at 10:24 am

      Hi Linda,

      Dismissed and discharged are not the same things. If the bankruptcy was dismissed, then the mortgage was not included, or discharged. You would be eligible for FHA financing in 3 years from the foreclosure, and Conventional financing in 7 years from the foreclosure.

  113. Mindy on March 7, 2017 at 5:50 pm

    Hello Scott, are there any mortgage lenders that will approve a loan 1 year after having chapter 7 bankruptcy discharged in NY?

    • Scott Schang on March 8, 2017 at 10:22 am

      Hi Mindy,

      There are lenders that will allow this, but it is not “traditional” financing. What that really means is that the interest rates and closing costs are going to be a little higher, and you would need a 20% down payment.

      If you think that you’re interested in exploring that option, I do know a lender that has experience with those types of programs that can help answer any questions you have about it.

      Was there a home included in that bankruptcy? If not, you would be eligible for FHA financing in 2 years from the discharge of a Chapter 7. That means that if you could come up with the down payment, and if you can afford the payments, you would only need to keep that portfolio loan for about a year or less until you could refinance into a FHA loan.

      Hope this helps?

  114. Edwin on March 7, 2017 at 11:35 am

    Hi Scott, I am in the market to buy a house after a short sale. It will be 2 years in as of October 12, 2015 that I sold me home. Are there any programs that I can take advantage of to but a house with a 690 credit score?

    • Scott Schang on March 7, 2017 at 11:43 am

      Hi Edwin,

      Yes, there are absolutely programs that will allow this. Is there any chance that there was a bankruptcy prior to the short sale?

      If not, you’re looking at a minimum 20% down payment. Your credit scores are fine. You can expect higher rates and fees on these programs, so you just have to do the math and see if it makes sense. In my experience, if you have the means, it almost always makes sense to consider an option like this.

      If you’re interested in exploring these options further, feel free to shoot me an email to scott@findmywayhome.com and we can continue to discuss your options.

      Hope this helps?

  115. Joseph N on March 7, 2017 at 10:49 am

    Hi Scott,
    Some high level details about my situation. Purchased our current home almost 6 years to date. Had a short sale on the previous home almost 5 years to date as well. Looking for new (larger) home that is a new build. Had problems the past years of refinancing but was finally able to refi last year. Living in NorCal in a housing market that is medium-hot right now so we could turn a good size profit on the home sale that could go towards the down payment. Problem is, who would lend on my case and look past the 7 year requirement? Would be nice to get a Jumbo loan.

    • Scott Schang on March 7, 2017 at 11:01 am

      Hi Joseph,

      I have an investor here in California that will allow short sale seasoning of 4 years with 20% and high credit scores. This investor is an “A-paper” lender with really good rates and terms.

      Another option may be an 80/10/10 with a conventional first mortgage up to the conforming loan limit of $636,150.

      There are always portfolio lenders that will allow the shorter seasoning, but carry higher rates.

      If you would like to further explore any of these options, feel free to email me directly at scott@findmywayhome.com

      Hope this helps?

  116. Jeff M. on March 6, 2017 at 1:12 pm

    Hi Scott,
    I was chapter 7 discharged in feb.2016 and the house was included. the house sold may of 2016 but nowhere on my credit report does it show a foreclosure. my question is is we are living in my wifes brothers house and this is the house we want to buy. he just wants whats owed on the house so we were going to do a gift of equity for the 20 percent down but my wifes debt to income is to high. is there anyway I can qualify for the mortgage?

    • Scott Schang on March 6, 2017 at 1:22 pm

      Hi Jeff,

      You’ve got a couple of challenges here. Traditional, conventional financing is going to require a 4 year wait from the bankruptcy. The foreclosure does not require a separate waiting period, but is a matter of public record, and is not something you can avoid. FHA financing is going to be a 3 year wait from the foreclosure date, which puts you another couple of years.

      There are two other options that I can see. The first, and easiest, would be for your brother to do seller financing. This essentially means that you make loan payments to your brother every month until you qualify for traditional financing.

      The last option is that you use a portfolio loan. This option allows for a higher debt to income ratio than traditional financing (50% as opposed to 45%). A portfolio loan is going to have a higher interest rate, and higher closing costs, but would be a small price to pay to get a deal on this home.

      If you would like to explore the portfolio loan option, shoot me an email to scott@findmywayhome.com and I can introduce you to a lender that can help. Please include what State you’re buying in?

      Hope this helps?

  117. Tara Kinman on March 3, 2017 at 8:37 am

    Hi Scott,

    Do you know of any lenders that will finance 2years after short sale? Or is the waiting period a hard 3years? Long story short we had to get FHA involved in order to the process started with the mortgage company, and thought we were doing the right thing by doing a short sale, but seems we were wrong. I can email you the details if that will help. We are in NC

    • Scott Schang on March 3, 2017 at 9:25 am

      Hi Tara,

      Yes, email me the details to scott@findmywayhome.com. There are investors that will do this 2 years from short sale, but they will typically require better credit scores and a higher down payment. These are called Portfolio loans, which basically just means that they lend their own money, and do not sell to Fannie Mae.

      Was the mortgage included in a bankruptcy by any chance? That can also shorten the waiting period in some cases.

  118. Valerie on February 27, 2017 at 8:25 pm

    Hi Scott!
    I just sent you an email. I looking for information on qualifying for a hardship second chance after short sale. Thanks!

    • Scott Schang on February 27, 2017 at 8:45 pm

      Hi Valerie,

      I haven’t received an email from you yet, but I did get your inquiry. I’ve forwarded it to a very experienced lender friend of mine in IL that has a lot of experience with second chance guidelines after a short sale.

      I will look out to for your email. Did you send it to scott@findmywayhome.com?

  119. Leslie DiCarlo on February 26, 2017 at 5:40 am

    Hi
    We had DIL 2012 in PA after putting improvements in home. Parents sick had to return to NJ to care for them. Couldn’t sell home close to our appraised value of 12 year old newly built home. Had to leave, called and told mortgage co we were leaving, sent keys and left, filing DIL.
    Had the mortgage forgiveness act, so we had the tax impact and credit impact but our best option at time.

    We are renting for passed 5 years and want to buy home in Florida. Income is supportive easily, paid credit cards and taxes and have credit score around 780.

    Anything we should be concerned with please? Thank you!!

    • Leslie DiCarlo on February 26, 2017 at 5:43 am

      Typo…credit score 740

      • Scott Schang on February 26, 2017 at 8:31 am

        Hi Leslie,

        You should have no issues with the DIL as long as title transferred out of your name in 2012. It is not uncommon for there to be a delay from when you complete the paperwork and when the lender actually transfers the home out of your name.

        The only other challenge you may have is finding a lender that has experience with these guidelines. I have lender friends in Florida with experience that can help. If you would like an introduction, shoot me an email to scott@findmywayhome.com and I can get you pointed in the right direction.

        Hope this helps?

  120. Cam on February 24, 2017 at 10:16 pm

    Hi Scott,
    Thanks for putting these guidelines together. It’s very helpful. You sound like a lawyer too, very knowledgeable!
    I had a short sale 4 years ago, and is in the process of closing a jumbo loan that has been going smoothly with this loan officer who is being introduced to me from a long time real estate agent friend. I just realized from the info here that it will normally take 7 years to get a jumbo after short sale. Even this loan agent did tell me that not a lot of bank will do it. What my question is: since I am getting a new build, the builder did offer me a loan through a credit union, and they are willing to lock my rate at what this credit union is offering on the site, which is really attractive, but they haven’t gone through final underwriting yet, but they did assure me that everything looks great and keep pushing me to lock the rate with them. Would the builder’s loan agent give me the rate they are locking for me? Is it really true that credit union is very strict on approving a jumbo mortgage esp. with my short sale record?Thank you so much for your information in advance! Appreciate your time!

    • Scott Schang on February 25, 2017 at 7:57 am

      Hi Cam,

      I think “sounding like a lawyer” is a compliment? So I”ll take it! Thank you 🙂 I am not a lawyer, and I do not offer legal advice, but I do try to share my experience as a mortgage lender so that others can find their way through the fog of misinformation and inexperience that plagues my industry. I appreciate the kind words!

      Yours is a very, very good question! Credit unions lend their own money in most cases. This means that they make their own rules. I am in California, and I have banks that allow exceptions for short sales as long as you have compensating factors like reserves, big down payment (20%), and good credit scores. As long as you are upfront and the loan officer knows that you had a short sale, you may very well be eligible for the loan that they are offering.

      The biggest challenge is knowing whether or not the loan officer knows what they are talking about or not. If the loan officer is not familiar with the guidelines, or does not previously have experience with this specific scenario, it could very well create a challenge once it gets on the underwriters desk.

      It’s going to be up to you to determine whether they are telling you what they think you want to hear because they want a pay day, of if they really know what they are talking about and have experience with this type of a scenario. I can tell you that it is definitely possible. A credit union is not necessarily strict, they are more likely to simply have an appetite for certain types of risk based scenarios above others.

      Hope this helps?

      • Cam on February 25, 2017 at 11:53 pm

        Hi Scott,
        Thanks so much for your time and your lightning reply. I really appreciate you taking the time to answer all my questions. It’s definitely very helpful. Thank you so much again!

  121. Rick on February 22, 2017 at 7:37 pm

    i fell down a set of stairs on 2-09-2015 i was out of work for 10 months due to the injury. my income dropped from 240.000.00 a year to 26,000.00 they foreclosed on my home and we moved out on Dec 21 2015. Is there some type of consideration for this type of thing or am i again screwed? by the way i did have personal disability insurance to cover this type of thing but in Az. if you are injured on the job your personal disability insurance is not valid if your injury happened at work and the max paid by Az workmans comp is 26300 per year.

    • Scott Schang on February 22, 2017 at 9:01 pm

      Hi Rick,

      Fannie Mae may consider this as an extenuating circumstance. Was there a bankruptcy as well? If there was no bankruptcy, Fannie mae may shorten the 7 year waiting period down to 3 years by documenting the loss of income.

      FHA financing is not so lenient and limits extenuating circumstances to death or permanent disability of a primary wage earner. If your injury makes you eligible for permanent disability benefits, the FHA waiting could be reduced from 3 to 1 year.

      Your final option is a portfolio loan. Yes, the rates and fees are higher than traditional financing, but it can get you into a home, start earning equity, paying down principal instead of paying rent, and take advantage of the tax benefits of homeownership. This would be a temporary solution only until you could refinance into a better program.

      If you think any of these options might apply to you, shoot me an email to scott@findmywayhome.com, and I can see if I can introduce you to a lender in your State that has experience with this type of scenario.

      Hope this helps?

  122. Peter Kuhl on February 21, 2017 at 12:02 pm

    Hi Scott maybe you can help me out the bank sold us back up on house on a short sale we have a lot of satisfaction from the mortgage company stating the mortgage was settled and fall but it seems we cannot get a mortgage do you think you can help us out thank you

  123. Peter Kuhl on February 21, 2017 at 11:53 am

    Hi kind of a different situation the bank sold me back my own house on a short sale I’m just wondering if I’m eligible for another mortgage now how can I go about about this I have a letter of satisfaction from the mortgage company saying that the loan was paid in full can you help me out with this thank you

  124. Stephen on February 21, 2017 at 11:51 am

    My bankruptcy was discharged in March of 2012. The bank wouldn’t move forward with the foreclosure, and in 2015 I was approached by a realtor who wanted to do a short sale. I told the realtor the bank refused all previous short sale offers but he was confident he could get one to go through. The bank approved the short sale and it sold in Dec of 2015. I just attempted to get a loan after reading I only had to wait 4 years from the BK. Apparently the underwriter rejected the loan because I signed a Deed in Lieu, in Dec 2015? Which I only did because the bank wouldn’t foreclose and I was unaware of the updated wait times. So now my 3 year wait starts from Dec 2015, instead of 4 years from March 2012? Please let me know if I have any other options. Thanks!

    • Scott Schang on February 21, 2017 at 1:28 pm

      Hi Stephen,

      The lender was probably trying to approve you for a FHA loan, and is not familiar with the guidelines. Send me an email to scott@findmywayhome.com and I can introduce you to someone that can help. What State are you in?

  125. Jenny on February 19, 2017 at 11:30 pm

    Hi Scott,

    We had a short sale on our home in CT due to no employment and we had to move to Texas for work. It was a USDA direct loan so they came after us for the rest of the $140,000 that was left on the loan. At that point we filed a chapter 7 bankruptcy and included the home.

    The home and bankruptcy was discharged 9/2015 and the home was short sale sold on 10/2015.

    We already purchased a new house in Texas before the short sale of the home because we were renting it out at the time to help pay for the mortgage. I assumed the tennets loved it and wanted to stay but after some winter electric heat bills they wanted out ealier then expected. After renters moved out we again had a hard time paying that mortgage. So I tried selling it as a short sale and I got people right away.

    So my question is the new house we bought in Texas (I really dont enjoy the area and would like to move the bay area of Texas) I want to sell and purchase in another area. How long to I have to wait to buy again. Our credit scores are in the low 600 s due to the bankruptcy but our credit payment history has been 100 percent on time for 10 years.

    The bankruptcy and the short sale were all due to no employment in CT so we reloctated 1800 miles for work.

    • Scott Schang on February 20, 2017 at 7:36 am

      Hi Jenny,

      For traditional financing like Conventional, FHA or USDA, the waiting period is a minimum 3 years from the short sale for FHA and USDA, 4 years from the Bankruptcy for Conventional.

      If you have a minimum 20% down payment after the sale of your current home, you could consider a portfolio loan. These loans have higher rates and fees, but will accomplish the goal of homeownership until you can refinance into a loan with better terms.

      Hope this helps?

      If you are interested in this option, shoot me an email to scott@findmywayhome.com and I can introduce you to someone I know and trust that has experience with these guidelines.

  126. Tia Erickson on February 14, 2017 at 9:26 pm

    We filed Chapter 7 in 2010 and included our home. However we did retain the residence for a little while by keeping current on the payments but never reaffirmed the loan. We finally stopped paying and it was foreclosed on in 2015. We are currently trying to buy a house with the Home Ready 3% down conventional, but the underwriter has said since we retained the residence and it was not surrendered at the time of bankruptcy, then we have to go by the actually foreclosure date and not the bankruptcy discharge. Is there any advice you could give to get around this? thank you

    • Scott Schang on February 15, 2017 at 8:08 am

      Hi Tia,

      That underwriter is imposing their own opinion on the interpretation of the guideline, or following an overlay opinion by their employer. I know many lenders that follow the guidelines and can do this loan. Please shoot me an email to scott@findmywayhome.com, let me know what State you’re buying in, and I will introduce you to a lender that can help.

      You are eligible for HomeReady now.

  127. Megan on February 14, 2017 at 12:23 pm

    My bankruptcy was discharged in Oct of 2010, however the bank did not foreclose on the house until September of 2016. Shouldn’t the date of 2010 be the one that holding period goes by? If not, then how come I get penalized again beings it took the bank so long to foreclose on the home after it was discharged ?

    • Scott Schang on February 14, 2017 at 3:19 pm

      Hi Megan,

      Conventional underwriting guidelines agree with you 100%, and changed their guidelines in August 2014 to allow you to use the bankruptcy waiting period of 4 years from the discharge, as long as the mortgage was discharged through the bankruptcy.

      Unfortunately, FHA underwriting guidelines do not follow these same waiting periods, and will require a 3 year waiting period from the date of the foreclosure. It is not uncommon for lenders to only know, and quote this waiting period.

      Not all lender know, or understand these guidelines. If you need help, shoot me an email to scott@findmywayhome.com with your location, and I can introduce you to a lender that is experienced with these guidelines.

      Hope this helps?

  128. A. Billops on February 10, 2017 at 4:31 pm

    my chapter 7 bankruptcy included my house and discharged May of 2012. It took the bank a total of 4 years to actually foreclose which occurred December 2016. Am I eligible to rebuy after May since 2017 since the chapter 7 discharged in May 2014

    • Scott Schang on February 10, 2017 at 4:55 pm

      Hi Anitra,

      I also answered your email, but I’ll put it here as well so that others may benefit if they are in a similar situation. I believe you are saying that the bankruptcy is discharged in 2014, right?

      The waiting periods are different depending on what type of financing you are applying for. FHA financing is going to look at the bankruptcy and the foreclosure as two separate events with two separate waiting periods. The soonest you would be able to buy using FHA financing would be 3 years from the foreclosure.

      The soonest you could buy would be using Conventional financing, 4 years from the discharge of the bankruptcy. Conventional financing will allow you to ignore the foreclosure date.

      Hope this helps?

  129. Janine casdia on February 10, 2017 at 7:39 am

    Hi Scott! Hoping you can direct me a bit further although I have found your website quite helpful and informative itself, thank you! My husband and I filed chapter 7 and rolled our property into the bankruptcy. It was discharged in June 2015. I understand the standard wait period for a new loan through fha is 2yrs from date of discharge. This seemed to be our best hope in repurchasing till now… Could you kindly provide me with more info on subprime loan or stated income loan opportunities specific to my circumstances? I would be so very grateful!

    • Scott Schang on February 10, 2017 at 8:21 am

      Hi Janine,

      You are correct that the waiting period after bankruptcy is 2 years, but there is a separate waiting period depending on what happens to the home that you included in the BK.

      Stated income and portfolio loans are available with a very large downpayment, higher interest rates, and higher fees.

      Shoot me an email to scott@findmywayhome.com with the details of your situation, and I’ll do my best to match you with a lender in your area that has experience with these types of solutions.

      Hope this helps?

  130. Cassandra Aristide on February 9, 2017 at 1:49 pm

    My husband and I did a short sale in March of 2010 (first payment missed in January of 2010; sale recorded in March). We had an 80/20 loan with Wells Fargo. Our attorney had worked out that both 1st and 2nd would be marked ‘As Agreed’ on the credit report, but when we got the closing docs a few hours before closing, the 2nd was listed as a deficiency. Our attorney said to go ahead and close and deal with it later. Afterward, WF wouldn’t budge on the second, so as of 2016 it was still listed as a deficiency on our credit report. Since it’s now been 7 years will it still prevent us from getting a mortgage if it hasn’t fallen off the credit report like it should? Any advice on how to handle this? Thanks very much!

    • Scott Schang on February 9, 2017 at 2:12 pm

      Hi Cassandra,

      How that mortgage reported 7 years ago will not impact your ability to buy now. There is a “waiting period” depending on what type of financing you are using to buy the home after a short sale.

      For Conventional financing, the waiting period is 4 years from the short sale date. For FHA or USDA financing, it’s a 3 year wait before you are eligible.

      You are well past both of these waiting periods.

      If you would like an introduction to a lender that understands these guidelines, you can send me an email to scott@findmywayhome.com, and I’ll see if I can introduce you to someone in your State.

      Hope this helps?

  131. LA on February 7, 2017 at 4:55 am

    Hi Scott. I’m in nj I had to file bankruptcy 4years ago and gave up rights to an investment property. I was single not married. Only my debt. Now my husband and I are married and want to buy a house he wants neon mortgage with him but that bank still has not sold my foreclosure that I am not responsible for through my chapter 7. Does the new rule apply to me. Can I apply for a conventional loan 4 years after I gave up monetary responsibility to that home even though they haven’t sold it? I hope so.

    Thanks

    • Scott Schang on February 7, 2017 at 8:04 am

      Hi Lindsey,

      This is a common problem that I affectionately call a “Zombie Foreclosure”. Unfortunately, while the bankruptcy does relieve you of any financial accountability in the event of a default on the mortgage, the lien survives a bankruptcy, and you are still the owner of the property until that your name is removed from title by selling it (short sale, or other), a deed in lieu of foreclosure, or foreclosure action by the lender due to the mortgage being in default. There is no law that requires a lender to foreclose, and I’ve seen this hundreds, if not thousands of times where years have passed without the bank taking the home back.

      Sorry for the long explanation. The simple answer to your question is no, you would not be eligible under the conventional guideline right now. The longer answer is that you would be eligible as soon as you can get your name removed from title. You can either list the home for sale (or short sale) with a local Realtor, or contact the bank and negotiate a deed in lieu. The day after the new grant deed is recorded, you would be eligible under conventional guidelines.

      A last thought here. If your income is not required to qualify for the new home, you could be on title, but not on the loan.

      Hope this helps?

  132. James E. & Debbie L. Jones on February 6, 2017 at 4:27 pm

    I had a foreclosure, had move by 6 jan. 2016 but, PMI paid original lender well before that date, CAIVRS says name will be removed in June or July 2017. I guess my name was taken off title or something, at the earlier date, right?

    • Scott Schang on February 6, 2017 at 4:41 pm

      Hi James and Debbie,

      Normally, the PMI claim is paid about 3 to 6 weeks after the foreclosure takes place. If you are trying to apply for FHA financing, the waiting period is 3 years from the date that the claim was paid. If you want to shoot me the address of the home to scott@findmywayhome.com, I can look up public records and see if I can find the foreclosure date.

      By the way, using conventional financing, the waiting period is based off the foreclosure date, not the date the insurance claim is paid. And if the mortgage was included in a bankruptcy, you can use the bankruptcy date, and ignore any foreclosure that occurred after the discharge.

      • James E. & Debbie L. Jones on February 7, 2017 at 6:00 pm

        Hey Scott, thanks for taking the time, Home’s address was 324 SW Sonoma Way, Ft. White, Fl. 32038, also home was included in chapter 7 bankruptcy that discharged in july 2014 I believe. I have been told by a lender that I have a CAIVRS listing that will mature in 2017, so is the bankruptcy discharge date the one that I have to worry about and may also be the reason that PMI paid before subsequent foreclosure? Scott, thanks again for your help. James & Debbie

        • Scott Schang on February 8, 2017 at 7:43 am

          Hi James and Debbie,

          The Trustees Deed Upon Sale (foreclosure date) was 1/22/2016. Anything that has to do with CAIVRS would mean using a FHA or VA mortgage. FHA guidelines would not allow you to use FHA financing until 3 years from the date that the Mortgage Insurance claim is paid by HUD.

          If you only use the foreclosure date, you would not be eligible for FHA financing until January, 2019. The quicker path to traditional financing is using a Conventional, which will allow you to ignore the foreclosure date, and buy again in 4 years from the discharge of the Chapter 7, as long as the mortgage was discharged through the BK.

          This timeline would put you at July 2018.

          Unfortunately, your lender is wrong. They are looking at the fact that your mortgage stopped reporting on your credit report in July 2014, and assuming that the 3 year wait starts at that point. This is a common mistake that inexperienced lenders make. You are not going to be eligible in 2017.

          All this being said, if you have 20% down, there are lenders that will help. The rates and fees are a little higher than traditional financing, but it will get you into the home, and you can refinance next year when the BK seasons.

          Again, if you would like an introduction to a lender that can help with this, shoot me an email to scott@findmywayhome.com and I can make that introduction for you.

          Hope this helps?

  133. Allison Shamrock on February 5, 2017 at 6:50 am

    Good morning! I have a question. We recently completed a deed in lieu on second home in New Jersey and gave been living in Arizona for the past 12 years and have never missed a payment on our home. Is it possible to obtain a mortgage if we sold out current home and had 10-20% down towards a new home?

    • Scott Schang on February 5, 2017 at 9:17 am

      Hi Allison,

      Unless the mortgage on the NJ home was discharged through a bankruptcy, you would still be subject to the waiting periods having had the deed in lieu.

      That said, there are loan programs that will allow you to buy with 20% down payment that carry a little higher rates and fees.

      If the NJ mortgage was discharged through bankruptcy, you could be eligible for conventional financing 4 years from the discharge date, and ignore the deed in lieu.

      Hope this helps?

  134. Satchi on February 2, 2017 at 10:03 pm

    Thank you for putting these guidelines in plain simple English. I had a foreclosure on an investment property in 2013 that is preventing me from refinancing my high interest primary home loan. The scenario with the foreclosure was due to fraud by the developer. It was a pre-development lot. The developed took all the money, the never developed the sub-division, and then filed for bankruptcy, and we all were left holding pieces of dirt. I later heard the developer in fact was jailed for illegal mortgage practice and fraud. Does this allow me in some ways to either remove the foreclosure from my record or apply for extenuating circumstances? I haven’t found any broker interested even to look into Fannie Mae extenuating circumstances route. Thanks for any advice.

    • Scott Schang on February 3, 2017 at 8:10 am

      Hi Satchi,

      That is a very good question..is this an extenuating circumstance? Absolutely, yes. Is an underwriter willing to dig into it, document it, and get prior-approval from Fannie Mae? That’s an entirely different question.

      I can warn you that going down this path means documenting that any payments due from you would have had to have been paid throughout this process. You would have to show that you made every attempts to honor your side of the contract, and that the illegal activities alone are responsible for the foreclosure.

      Another question I guess I have is, if the lender took the deposit and ran, what was foreclosed? If no payment was due, and there was no home, how is this a foreclosure?

      Shoot me an email to scott@findmywayhome.com – I am very curious about the answers to these questions, and I might be able to point you in the right direction of a lender that would be willing to help. Also let me know what State your primary residence is in?

  135. Karen on February 2, 2017 at 1:58 pm

    Do these guidelines apply for Home Equity loans as well? I had a DIL in February of 2016 for my former home and would like to get a new Home Equity loan on my current home to consolidate bills. Just wondering how long I have to wait for that. Thanks!

    • Scott Schang on February 2, 2017 at 3:14 pm

      Hi Karen,

      Since Home Equity Loans do not typically follow Fannie Mae or FHA guidelines, it would be up to the lender to write their own guidelines. Most traditional banks that I know of follow fannie mae guidelines because they are the most restrictive. I would suggest maybe talking to credit unions. They tend to consider these scenarios on more of a deal by deal basis from my experience.

      Hope this helps?

      • Karen on February 2, 2017 at 3:17 pm

        It sure does! Thank you much!

  136. Jonna Lackey on February 1, 2017 at 9:01 pm

    Hello. I signed DIL in January ’17. Is the standard waiting period three years in all states from date signed for FHA? How does DIL apply to buying land to build and paying it off prior to waiting period on a construction loan? Or is that an option? Also, how do they calculate tax on DIL? Would a tax attorney or CPA me best help on this matter? When does it show on your credit report? Nothing negative is showing on my credit report since it sold three years ago to this mtg. co. shows sold. Mtg. Brokers in this area know very little about DIL. I’m afraid I made a mistake by accepting this offer.

    • Scott Schang on February 1, 2017 at 9:17 pm

      Hi Jonna,

      FHA is going to require a minimum 3 year wait from the date your name was removed from title.

      Yes, you would want to discuss the tax liabilities with a CPA or tax attorney. If the mortgage was not discharged in the bankruptcy, you could be liable to pay taxes on any losses the lender occurs due to a deficit between what is owed, and what they can sell it for. In some States, if the default occurs on a primary residence, on the loan used to purchase the home, it could be considered a non-recourse loan, and you would not be liable for the taxes. Check with an attorney or CPA.

      Construction and land loans are not typically underwritten using FHA or Fannie Mae guidelines, so they make their own rules regarding the waiting periods after a deed in lieu of foreclosure.

      Hope this helps?

  137. Katrina Marrow on January 31, 2017 at 12:08 pm

    Hi I filed bankruptcy in 2011 my house was house was discharged in bankruptcy. I tried everything to get the deed out my name short sale deed and Lui the bank denied everything and my home has been vacant for 6 years. My home is in forclosure with no sale date for 7 years the bank wont forclosure do I have to wait til the deed is no longer in my name to buy again under Fannie Mae if so I’m screwed I won’t ever be able to buy again because bank wont go forward with forclosure

    • Scott Schang on January 31, 2017 at 12:47 pm

      Hi Katrina,

      You’re pretty much stuck if your name is still on title to the home. Have you attempted a short sale?

  138. Kerri Passwaters on January 31, 2017 at 11:01 am

    I lived in a house for 6 years after chapter 7 they have recently started forclosure … I offered deed in leu so I wouldn’t have forclosure on my credit chapter 7 was discharged 2011 May.

    • Scott Schang on January 31, 2017 at 11:05 am

      Hi Kerri,

      If your mortgage was included in the bankruptcy, neither a foreclosure or deed in lieu will show up on your credit. Your mortgage stopped reporting to your credit as soon as it was discharged.

      Whether you do a short sale, deed in lieu, or foreclosure may affect the timeline for buying another home depending on what type of financing you are trying to use.

      Using conventional financing, you would be eligible to buy again as soon as your name is removed from title, regardless of how it is removed.

      Hope this helps?

  139. Amber on January 31, 2017 at 7:53 am

    I filed bankruptcy in 2012 my house was included in it but stated it was stated in the documents keeping home as a loan modification. The Modification was denied by the Bank in May 2013. In August 2014 the home foreclosed on. What date can I actually buy a home again?

    • Amber on January 31, 2017 at 7:55 am

      Sorry I left out, the Bankruptcy Chapter 7 was Discharged September 2012

      • Scott Schang on January 31, 2017 at 8:11 am

        Hi Amber,

        Your “intention” at the time of petition does not affect your ability to qualify for Conventional financing in 4 years from the discharge of a Chapter 7 discharge, regardless of when the foreclosure took place. This makes you eligible now!

        For FHA financing, the waiting period is 3 years from the foreclosure date.

        Hope this helps?

        P.S. If you would like an introduction to a lender that has experience with this guideline, shoot me an email to scott@findmywayhome.com and I can introduce to someone. Include the State you’re buying in 🙂

        • Amber on January 31, 2017 at 9:34 am

          Would this still apply to us even if the loan that was foreclosed on was a conventional loan?

          • Scott Schang on January 31, 2017 at 10:09 am

            Really good question Amber! Yes, that’s ok. If the mortgage that gets foreclosed is FHA or VA, and you are applying for a FHA or VA loan, the rules and timelines are different than the standard waiting period.

            Conventional foreclosure to conventional purchase is no problem.



  140. Martyfra on January 30, 2017 at 1:24 pm

    Here is our situation. Chapter 7 discharged in 2011. 1st and 2nd included. Continued making payments until 1/16. No payment since. Divorced in 11/16. Husband gets the house in the divorce. Currently negotiating with mortgage company no foreclosure started. Wife moves out and wants to buy a house as soon as possible. Wants to use low down payment conventional/VA financing. We have not quit claimed the title yet. Questions are should we quit claim asap? How soon can wife get a low down payment loan. Assuming no credit/income issues.

    • Scott Schang on January 31, 2017 at 10:19 am

      Hi Marty!

      Oh my gosh, I’m so sorry….yes, I get hundreds of questions a month. I’m usually pretty good at catching them all, so I apologize that I missed yours 🙁

      There are a couple of things that need to take place here. First, the divorce decree should specifically state that wife is not responsible for loan. If that’s the case, that wife is not responsible, I would do a grant deed to remove her from title ASAP.

      As soon as wife is off title, if you were in California, I would be able to do a conventional purchase loan immediately (4 years from discharge of BK7).

      I do have lender friends that are pretty experienced around the Country that might be able to help as well. Most lenders would probably just say no because there are too many moving parts and they do not have experience with these types of scenarios.

      If the current loan on the home is either FHA or VA guaranteed, this could cause challenges since they do not use the BK discharge as the waiting period start date.

      Again, if wife is off title, I think this can be done. It’s not going to be super easy though.

      Hope this helps?

      What State are you buying in? Maybe I can introduce you to someone that can help dig into this a little deeper.

  141. Frank Disensi on January 30, 2017 at 12:40 pm

    I want o buy a home in KC to eventually retire in while I am working in St Louis How long will I have to wait after a short sale to get a mortgage. I am renting in ST Louis and want to buy in KC

    • Scott Schang on January 30, 2017 at 12:53 pm

      Hi Frank, if the mortgage was included in a bankruptcy, there is a 3 year wait to use FHA financing, and a 4 year wait from the short sale to use conventional financing.

      Hope this helps?

  142. M. Simmons on January 29, 2017 at 8:26 am

    I have to retire early due to health issues. I plan to release current home to bank in lieu of foreclosure
    What are my options for obtaining a new home or place to stay?

    • Scott Schang on January 29, 2017 at 9:14 am

      If the home is not included in a Bankruptcy, you may want to discuss the potential for the deed in lieu causing a taxable event. Please consult your accountant, and/or a bankruptcy attorney to determine if the lender can send you a 1099 after a deed in lieu.

      You would be eligible to buy again in 3 years from the deed in lieu using FHA financing, or 4 years using a Conventional loan.

      Hope this helps?

      • M. Simmons on January 29, 2017 at 10:49 am

        Is there a good time to have a telephone discussion with you about additional mortgage questions?

  143. Tony on January 27, 2017 at 10:52 am

    Scott, I am in the military and lost my VA loan benefits due to a short sale. According to the VA I would have to pay back $63,000 to get it reinstated. My short sale was done in December 2013 and signed the paperwork on 14 January 2014. Am I still stuck until December 2017 before I can use a conventional loan? My credit score is 757 and I have no debts right now. I have a substantial amount in savings. I just want to know if I can continue with my house purchases?

    • Scott Schang on January 27, 2017 at 6:26 pm

      Hi Tony, yes, conventional is 4 years from the short sale date unless the mortgage was included in a bankruptcy. The only other option would be a portfolio loan, which would allow you to buy with 20% down, and a little bit higher rates and fees. From a financial perspective, that additional investment might still make sense for you to carry you through the next 11 months. If you would be interested in exploring this option, shoot me an email to scott@findmywayhome.com and let me know what State you’re buying in.

  144. Doug on January 26, 2017 at 12:29 pm

    Hello Scott,

    First off thanx for all of the help and attention you have given people here on your site. Obviously you love what you do and are very knowledgable.

    So mine is more of a question of how do i financially qualify for a loan.

    For starters I have a bankruptcy (7) that discharged January 2014, reestablished credit 3 months after that with credit cards and a car loan and have paid on time without fail. My credit score is about 680 and i have enough money for a FHA down payment and some left in reserves after that. Obviously i’ve past the 2 year waiting period and i’m ready to buy right ??? wrong!!!

    The issue i am having is one of Income. I run my own business and technically I make enough to qualify for a loan but not according to a few mortgage brokers i have spoken to. The problem seems to be that when i worked for others my income was based pretty much on the gross earnings and now that i work for myself i sadly and shockingly found out its based more so on the NET amount !!! Well we all know businesses can write off expenses till the cows come home…and on the way home my cows not only come home with empty udders they also owe milk to the dairies…hahaha….Basically my business tax returns show that i am operating at a loss…Which i’m really not, i just have a lot of legal write offs.

    Its very demoralizing working hard for the last 2 years to make sure that my income was not going to be an issue by earning more than i made when i worked a conventional job only to find out that it was all for naught. :-(…. My personal tax returns show $0 income because there was no money left from all the business write offs to pass on to me (and will be that way for several more years). Obviously I made money and in actuality have even been able to save more money due to not having to pass it on to the government in taxes.

    At this rate it seems like on paper i will NEVER qualify for a house based on my tax returns…Is there a way to overcome this hurdle without having to put down a huge down payment or worse yet foregoing all of my legal writeoffs to achieve a net income that can be used to qualify??? I am sure i am not alone in this dilemma

    • Scott Schang on January 26, 2017 at 12:38 pm

      Hi Doug,

      Yes, unfortunately you are stuck in the self employed hell that does not have a good answer in 2017. There are no such things as stated income loans anymore, lenders are going straight off NET taxable.

      There are self employed options that will allow you to use bank statements as income, but expect a minimum 20% down, and higher rates and fees than a traditional, FHA loan.

      Last question, was there a mortgage included in that bankruptcy? If so, that changes things as well.

      • Doug on January 27, 2017 at 7:19 am

        There were no foreclosures included in the BK …. however they occurred approximately 5 to 6 years prior to the BK … The reason for the BK was so that i didn’t have to pay taxes for the continued 1099C’s I started to receive over time (I had 11 properties).

        I listed each and every bank I ever had a loan with as well as the debt collectors that were trying to collect on those pesky 2nd mortgages at the time. I’m 100% sure i stomped them all out 🙂

        Based on that does that change anything???

        I’ve read some of the horror stories here with BK’s happening and then being surprised to find out from the grave that an old house has reached their hand out of the grave to screw things up because somehow the property is still attached to them. Is there anything you can suggest that i do in the meantime to make sure/verify none of those 11 houses haunt me???

        Thanx so much and i appreciate your time

        • Scott Schang on January 27, 2017 at 7:24 am

          Hi Doug, I am not a bankruptcy attorney, but from what I understand (including personal experience) you do not have to specifically list every single debt in the BK. If you had the debt at the time of filing, it is considered to be included in the BK unless specifically reaffirmed outside of bankruptcy protection.

          If you missed a creditor, they may not have received notice of the discharged of their debt. I would consult your BK attorney, but I believe you would simply have to show that you filed, and all of those mortgages were discharged through the bankruptcy.

          • Doug on January 27, 2017 at 7:28 am

            Wow that was quick!!! Here i was thinking i had to clarify … You’re a sharp one!!!!

            Thanx again



      • Doug on January 27, 2017 at 7:26 am

        Sorry Scott I think i answered you incorrectly…Yes there were mortgages included…I think??? As i commented earlier the houses were foreclosed on and there were some 2nd mortgage debt still floating around. I definitely placed those in the BK. I “THINK” I may have put the 1st mortgages for all the properties on the bk just for good measure.

        • Scott Schang on January 27, 2017 at 7:29 am

          I understood your answer, and my reply remains the same. You may be receiving 1099’s because the creditors were not notified of the discharge, or the debt was sold and you didn’t know who the new servicer was at the time you filed.

          Either way, I believe bankruptcy law would protect you from receiving those 1099’s. I would consult your BK attorney for legal opinion.

  145. Candice on January 26, 2017 at 8:55 am

    Hi Scott,

    I filed a chapter 7 in 2014 and had my condo’s mortgage included. I assumed that at the time I was free of the property. Until recently when I applied for a mortgage the issue came up that my name is still on the mortgage for that property. I contacted my attorney for the bankruptcy and was told I have to do a deed in lieu for the property. I was never advised to do this by my attorney! I’m so upset because I found the perfect house for a price I can afford but it seems like I will have to wait three years to reapply for a mortgage? Please let me know what my options are…Thank you!

    • Scott Schang on January 29, 2017 at 10:07 am

      Hi Candice,

      I apologize for the delay in getting back to you. This is one of the crazy things that have happened over the past 10 years, banks are letting homes sit out there without collecting payments for YEARS and never foreclosing!

      The 3 year waiting period that you are being told is only if you are trying to apply for a FHA mortgage after the bankruptcy. If you use Conventional financing, as long as your name has been removed from title (either by foreclosure, short sale or deed in lieu) you would be eligible to buy in 4 years from the discharge date of the bankruptcy. Using conventional financing, you would be able to ignore the date that your name is removed from title.

      Hope this helps?

  146. Gale on January 24, 2017 at 11:03 pm

    My name is Gale My husband and I had a forclosed home in July 2015. I got ill and found out I have Myastina gravis. I was the main bread winner. I was an RN. Before all of this we had great credit. We paid off a lot of credit cards before my husband filled bankruptcy chapter 7 June 2016. I am unable to filled bankruptcy until 2019. We are wanting to buy a home. My father wants to give the downpayment for us. Do you have any suggestions? We are so depressed because we worked so hard and then lost it all.

    • Scott Schang on January 25, 2017 at 12:11 pm

      Hi Gail,

      I’m so sorry to hear about your illness and the hardship that followed. There are options to buy now, but they are limited by the timing of the foreclosure and bankruptcy. A portfolio loan would allow you to get into a home now with 20% down payment, an interest rate of between 6% and 8% (depending on your credit score and down payment), and you can expect higher fees than a traditional loan.

      Other than that, the earliest you would be eligible to buy right now would be using FHA 3 years from the foreclosure, and 2 years from the bankruptcy. If the result of your illness was that you are now on permanent disability, it’s possible that you could be eligible to be considered for an extenuating circumstances exception with FHA. That would reduce your waiting period to 1 year from the bankruptcy, making you potentially eligible in June 2017.

      If you can shoot me an email to scott@findmywayhome.com, let me know what State you’re trying to buy in, and I can try to introduce you to someone that is willing to help explore either of these options.

      Hope this helps?

  147. Erica on January 23, 2017 at 9:30 am

    Hey Scott,

    My husband & I filed chapter 7 May 2016.. July was the discharged date. Our current home wasn’t included in the bankruptcy. We are expecting and need a bigger house. Do we have to wait the 2 years to qualify for another FHA mortgage or can we at 1 year from the discharge date since our current home wasn’t in the bankruptcy…

    • Scott Schang on January 23, 2017 at 9:38 am

      Did you reaffirm the mortgage? If you didn’t reaffirm the mortgage specifically, it would have been included. That really doesn’t matter though if you continue to make payments on time, and are not in a position to have to settle for less than the amount owed if you sell that home.

      Having the mortgage included or not is not relevant to the bankruptcy waiting period. You’re correct on the timeline – it’s 2 years from the discharge date for FHA

      • Erica on January 23, 2017 at 9:44 am

        Thanks for responding! So there’s no way around the 2 years?

        • Scott Schang on January 23, 2017 at 10:15 am

          Only if you’re using “non-traditional” financing. These programs are also called Portfolio loans, and carry higher down payment requirements (usually 20% minimum), higher interest rates, and higher fees.

  148. Lisa on January 22, 2017 at 1:29 pm

    Hey Scott,

    Have a bit of a complicated case here. We filed for bankruptcy in 2014 (discharge 07-2014) with two homes included. One home went into foreclosure and had the official deed transferred in 02-2015. We continued paying on the other home because we were living in it, but have since let it go; this deed in lieu should be finishing soon. When are we eligible for a FHA home loan? We are confused, because it has been three years since our bankruptcy (07-2017) and two years since the first home (in which was included in the bankruptcy 02-2017) had the deed transfer/foreclosure. In addition the second home (also included in the bankruptcy) we are just now finishing the deed in lieu. Any insight would be appreciated. Thanks!

    • Scott Schang on January 22, 2017 at 1:48 pm

      Hi Lisa, this isn’t complicated at all. The waiting period will depend on the type of financing you are applying for.

      For FHA financing, each “event” is considered a separate event with a separate waiting period. The bankruptcy discharge waiting period is 2 years, that one is past. The foreclosure and deed in lieu each have a 3 year waiting period. Because the deed in lieu is going to be the most recent event, you would be eligible for FHA in 3 years from the deed in lieu date.

      That said, the quickest way for you to buy again will be conventional financing. Conventional guidelines will allow you go by the bankruptcy discharge date, and ignore any subsequent default as long as the mortgage was discharged through the bankruptcy.

      Due to the timing of the deed in lieu that has not been completed yet, the soonest you would be eligible to buy would be using Conventional financing, in September 2018.

      • Lisa on January 22, 2017 at 2:01 pm

        Thanks for the quick reply! So the deed in lieu will still count against us; even though it was included in the bankruptcy?

        • Scott Schang on January 22, 2017 at 3:59 pm

          Well, that’s a tricky question. It will not show up on your credit, you cannot receive a deficiency judgement from the lender, you will not have to pay taxes on any losses the lender takes, and it will not affect your credit score (it hasn’t reported on your credit since the discharge of the BK).

          However, if you do a deed in lieu of foreclosure, that is a pre-foreclosure action that will show up in public records, and will require a waiting period before being eligible to buy again using FHA financing.

          If you sell the home and are able to pay the lender in full. It would not be considered a deed in lieu or short sale, and would not require a waiting period before buying again (unless you have defaulted on the mortgage by not making payments)

          • Lisa on January 22, 2017 at 4:52 pm

            Thanks!



  149. Paul on January 21, 2017 at 6:22 pm

    Hi Scott, I had a foreclosure in 2011 and finally filed bk 7 in 2015. How long before I can buy again?

    • Scott Schang on January 21, 2017 at 6:37 pm

      Hi Paul,
      Because your foreclosure occurred prior to the filing, and discharge of your bankruptcy, for conventional financing, you have a 7 year wait from the foreclosure, and a 4 year wait for the bankruptcy. Because the bankruptcy waiting period is longest, you would be eligible for conventional financing in 2019.

      For you, FHA is going to be the quickest path to homeownership with a 3 year wait from the foreclosure (already past), and a 2 year wait from the discharge of the bankruptcy, which would be your anniversary date of the discharge in 2017.

      • Paul on January 22, 2017 at 9:10 am

        Thank you what is the difference between fha and conventional financing?

        • Scott Schang on January 22, 2017 at 9:25 am

          It’s difficult to really describe the difference other than to say that they are two different underwriting guidelines with two separate ways of interpreting your income, credit, and ability to buy a home.

          FHA is a government insured loan program that tends to be a little more flexible, and easier to qualify for. If you have good credit, and good income, it’s really just a matter of comparing the two to see which option provides the best terms for your needs and goals.

          • Paul on January 22, 2017 at 2:27 pm

            Thank you again I heard that you have to contact FHA about some type of code? Can you dicifer what I’m talking about?



  150. Nora Thiele on January 20, 2017 at 7:51 pm

    Hi Scott,
    I received some very upsetting news today and would like some help in figuring out if there’s any hope at this point.
    In 2011, I filed chapter 13 Bankruptcy due to a severe reduction in my pay after the school district in which I taught had filed for bankruptcy themselves and made all teachers take huge pay cuts. At the time of the pay cut, I could no longer afford my home. I tried to sell, but to no avail. I was worried about the possibility of a mortgage company coming after me for the money if I were to walk away, so I filed for bankruptcy. I did not have crippling debts or any collections, I just wanted to be free of the financial responsibility of the house. My bankruptcy discharged in June of 2011. This year I am ready to buy a home and had started the process, down to calling FHA myself to make sure I didn’t have a CAIVRS number. I was informed by FHA that I wasn’t eligible for a mortgage until 2019, because there was a judgement against the property in question as of 9/2016. I found this quite confusing, so I drove down to Federal Court today to print out my docket to prove that there has been a mistake since I included the mortgage in the bankruptcy and I haven’t heard anything about the property in over 5 years. Surely this was a big misunderstanding? Unfortunately, after I printed docket 1 and stood at the counter asking the receptionist to please show me which pages would prove that the property was included in the bankruptcy, she just shook her head. It was right there. The box was checked “retain”…the house was NOT included in the bankruptcy. It was listed, but not included. Needless to say, I burst into tears right there, in front of the three poor women that didn’t know what to do with me. Ironically, the only reason I filed for bankruptcy was the damn house in the first place! Is there anything I can do?
    Signed,
    Embarrassed single mother of three living in a two bedroom apartment, sharing a bedroom with my pre-teenage daughter

    • Scott Schang on January 20, 2017 at 8:55 pm

      Hi Nora,
      There are a couple things in your story that do not make sense. First, you said it was a chapter 13. Are you sure? Chapter 13 BK is typically a 5 year repayment plan. Are you sure it wasn’t a Chapter 7? That would make the timeline make sense.

      You also said that because the box was checked “retain”, that does not mean that your mortgage was not included in bankruptcy.

      What this sounds like to me, and I’ve heard a lot of these stories, is that you filed a Chapter 7, it was discharged in 2011 (same year you filed), and the lien was not removed from title until September 2016.

      What you were looking at was a copy of your petition. If you were to pull the notice to creditors, I am willing to bet that your mortgage company is listed as one of the creditors that were notified that their debt was discharged through the bankruptcy.

      You see, all of your debts are included, and discharged when you file bankruptcy, unless you specifically sign an agreement with the creditor to exclude it. This is called a reaffirmation agreement.

      If you can scan and email me your bankruptcy paperwork, I am cautiously optimistic that you may have options for buying before 2019.

      My email is scott@findmywayhome.com

      • Nora Thiele on January 20, 2017 at 9:27 pm

        Ok, yes, I made a mistake…it’s chapter 7. Sending an email now. It’s page 35 (1st page of second scan) that is throwing me for a loop. You’re so kind to be helping!

      • Scott Schang on January 21, 2017 at 4:10 pm

        Hi Nora,

        From what I am reading here, you filed a Chapter 7 bankruptcy, and your mortgage was included, and discharged in the bankruptcy.

        Your bankruptcy appears to be discharged either 2011 or 2012, which is more than the 4 year waiting period required before being eligible for Conventional financing.

        Using conventional financing underwriting guidelines, you can ignore any subsequent short sale, deed in lieu or foreclosure date.

        What happened to the property after it was discharged? Is your name off title now?

  151. Yasmi on January 20, 2017 at 1:33 pm

    Hello,
    Thank you so much for the information. I had a short sale last year using
    FHA loan. The short sale process took over three years. My husband and I
    have been renting for the last three almost four years due to the time spend
    trying to short sale our house. I am in the military and I can use my VA
    loan for my next purchase. Based on the 2017 VA Guidelines, it states that
    the VA does not recognize short sale as a derogatory event. I do meet the
    credit score requirement. When I contacted a lender they informed me that I
    was unable to apply due to my short sale not being two years old. Not sure
    who to contact to attempt to purchase a home sooner than later.

    • Scott Schang on January 20, 2017 at 2:37 pm

      Hi Yasmi, VA does not specifically address the issue of short sale in their guidelines. If your lender is able to get DU Approve/Eligible findings, there are lenders that will do this. Shoot me an email to scott@findmywayhome.com with the State you are buying in, and I will see if I can introduce you to a lender that can help.

      And THANK YOU for your service!

  152. JL Hayes on January 19, 2017 at 3:07 pm

    My husband and I built a home in September 2016. We put 20% down and got a conventional mortgage. The original lender sold the mortgage within the first month after closing. This month the original lender contacted us telling us the new mortgage company has asked them to buy back the loan as my husband had a foreclosure in 2010 that was never caught on ANY credit reporting until the new lender found it. I called the new lender and they said that they have no record of this on our account and to disregard what the original lender is telling us and continue to pay our mortgage. What should I do?

    • Scott Schang on January 20, 2017 at 8:07 am

      This is VERY interesting, wow. I would consult an attorney, and get a copy of your original loan application. In the declarations section of your application, did you disclose that you experienced a foreclosure in the past 7 years?

      Was the mortgage included in a bankruptcy (the one that was foreclosed?) And in what month in 2010 did the foreclosure occur?

      I would follow the direction of the new lender and continue to pay your mortgage on time. I would also prepare to protect yourself by collecting all of the documentation from the loan process.

      If the original lender made a mistake, they are going to be required to buy back the loan from whomever they sold it to, but unless they are accusing you of committing fraud, I don’t see how that’s your problem. If they made a mistake, that’s on them.

      I would like to stay updated on your situation. Please communicate with me either here, or directly at scott@findmywayhome.com

      • JL Hayes on January 20, 2017 at 9:37 am

        He did not disclose on our application that there were any foreclosures as he did not think it was applicable since it was nowhere to be found on his credit report or with the original lender when they pulled his credit. It wasn’t found until the loan was transferred.

        • Scott Schang on January 20, 2017 at 9:41 am

          Ok, this makes it more complicated because you signed the application stating that all of the information on the application was true. Did the loan officer interview you over the phone, in person, or did you complete the application online?

          At this point, you basically have a “he said/she said” situation.

          • JL Hayes on January 20, 2017 at 10:07 am

            It was a phone interview. The original lender told us that we could refi in July as it will fall off then, according to them. I don’t want to have to keep shelling out money, but I want yo do the right thing.



          • Scott Schang on January 20, 2017 at 11:21 am

            Again, I think this is the lenders problem, not yours. And your new lender is accurate, you would be eligible for conventional financing 7 years from the foreclosure.

            The fact that the lender did not see the foreclosure leads me to believe that the mortgage was discharged in a bankruptcy, is that the case? Was there a bankruptcy?



          • JL Hayes on January 20, 2017 at 11:29 am

            There was not a bankruptcy, no. I truly appreciate the advice, Scott. I have a feeling that the original lender is going to try to go after my husband for mortgage fraud, unfortunately.



          • Scott Schang on January 20, 2017 at 11:36 am

            It would make sense that they would deflect responsibility to you, the consumer. It’s disgusting. You always have the option of refinancing into a FHA loan now, or if they will allow you to wait until the 7 years is up in July, that’s an option as well.

            If the lender gives you a hard time, let them know that the loan officer interviewed you over the phone, and that you told them the truth. The loan officer must have decided to change the declarations so that they could get paid.



  153. Tammy Britt Medina on January 16, 2017 at 8:49 am

    Hi Scott. I haven’t read all the comments on here, but my question is pertaining to buying a home after a foreclosure. Everyone I have asked (lenders) say I have to wait 3 years, but I’ve read there are extenuating circumstances that would make purchase sooner. The loan was in my name, so the foreclosure (Dec. 2014) only appears on my credit, not my husband’s. He can’t get a loan on his own because his debt/income ratio is too high. We can’t together because of my foreclosure. I had to let them take the house because I had emergency surgery to remove a brain tumor and was out of work, couldn’t go back, though I tried, then was basically homeless for a few months until I got my disability claim approved. Sept. 2015 we moved to a different city in TN and now we’re paying $600/month to rent an apartment. We could definitely make a house payment!

    • Scott Schang on January 16, 2017 at 9:25 am

      Hi Tammy, permanent disability of a primary wage earner could be considered an extenuating circumstance. The challenge is finding a lender that is willing to put in the work to get the exception. There is a tremendous amount of scrutiny on the timing, and it all needs to be documented in a way that shows that this one time event that was completely outside of your control directly led to the financial hardship.

      The timeline you are being quoted is for using a FHA loan. FHA extenuating circumstances is very strict, and limited to death or permanent disability of a primary wage earner. An FHA exception would allow you to borrow in 1 year from the foreclosure.

      Using Conventional financing, an extenuating circumstances exception would allow you to borrow 3 years from the foreclosure.

      Your best bet may just be to buy in December 2017 if all else fails. Hope this this helps?

  154. Kelley on January 14, 2017 at 4:09 pm

    Hi Scott. First thank you for providing such clear answers on complicated mortgage situations. I’ve been researching all over the internet and yours is the first site that is truly helpful.

    My husband and I filed a BK13 in 8/2010. It was discharged in 3/2016. The problem is our mortgage. It was included in the BK and not reaffirmed. We made payments through 12/2010 and then my husband lost his job (again, due to the economy) and we stopped making payments in 1/2011. The lender didn’t pursue a foreclosure judgment until 8/2013. It is just now scheduled for a sale, next week (1/2017). This has been a horrible, painful process and my frustration level is off the charts. We tried to negotiate a short-sale, deed-in-lieu-of, cash for keys, etc. etc. over the last several years with no luck. We even moved out of our home for two years and then decided to move back, because taking care of two properties (HOA requirements) was expensive and time-consuming. During this time the bank sold our defaulted mortgage to a different lender, delaying the process even longer.

    We have found an investor who is willing to give us money so we can exercise our right of redemption. The plan is to sign a contract with the investor. We would agree on selling it back to him for an equity split assuming the bid is good. If the home doesn’t leave our name because we exercised our right of redemption, have we technically been foreclosed on? We are trying desperately to figure out a way to apply for a FHA loan.

    Since the discharge, we have reestablished credit — both through car loans and CCs. We PIF every month and I keep our utilization at 1%. Our credit scores are in range from 660 – 683 and our DTI is about 5%. We have some savings that can be used for a down-payment, but I’m hesitant to deplete our cash reserves. If FHA financing isn’t an option, can you point me in the direction of a good portfolio lender in Kansas? Thanks in advance for your help. I would love to put this nightmare behind us.

  155. Nina on January 13, 2017 at 3:34 pm

    Hi lost my home to forclusure in July 2010,filed bankruptcy on September 2010 the mortgage was included in the bankruptcy everything charged off. I am in the process of buying a home. Everything was going well till today the underwriter notify me that my loan will be denied because I need to wait 7 years from forclusure which will be in July. I am confused the bankruptcy waiting period is 5 for conventional loan I don’t know why the forclusure guide line has to apply if the mortgage was discharged plus I am putting 20% down and the house will be my primary residence.. help please

  156. Nick on January 12, 2017 at 6:32 pm

    Hi Scott I filed bankruptcy and it was discharged 2011 I included my mortgage in the bankruptcy and I planned on keeping the house at that time however in 2014 we moved and had to list the house I ended up doing a short sale that was finalized in January 2015 (I now know the short sale was dumb because it was included in the bankruptcy) I have been told that I can qualify or a conventional loan because it was included in the bankruptcy and they go off the discharge date and I have been told that I can’t because it wasn’t a foreclosure any help would be appreciated thanks
    Nick

    • Scott Schang on January 12, 2017 at 6:36 pm

      Hi Nick, nothing dumb at all about doing a short sale, makes no difference at all. Yes, you can use conventional financing, and my experience has been that most lenders don’t know how to do this.

      Shoot me an email to scott@findmywayhome.com, let me know what State you’re buying in, and I will introduce you to a lender that has experience with these guidelines and can help.

  157. Jake on January 12, 2017 at 9:18 am

    We had a Chapter 7 Bankruptcy in which we included our home – The Bankruptcy has been discharged for 3 years as of December 2016 but the actual foreclosure happened a few months after the discharge which will be three years this coming July 2017 – I make over the income limit for USDA and i am not a veteran. Is there any way to get an FHA to go through before July or any other options? i’m currently living in the house i’m trying to purchase.

    • Scott Schang on January 12, 2017 at 11:39 am

      Hi Jake, the only option would be a portfolio loan. That would require a 20% down payment, and the rates and fees are much higher than traditional financing.

      I would negotiate some sort of “higher” payment to “lease to own” with the owner of the property. Or give them a non-refundable “down payment” in exchange for them holding it for you until July

      Hope this helps?

  158. Doreen on January 11, 2017 at 11:49 am

    Hi Scott,

    My short sale was final 9/2015. I am getting mixed advice from different mortgage brokers that I can buy after 2 years, but based on what I’m reading on here it is 3 years. I was told that possibly I could qualify for extenuating circumstances since I had a loss of income due to my husband leaving me after we bought our home. However, I am not positive that is true. I tried to keep the home by doing a loan modification, but the payments were still too high. So ultimately, the home was sold through a short sale. I was not able to keep up on payments because I no longer had my husband’s income, which was more than 60% of the total household income. Since then my credit score has rebounded to the mid 700s. This is the first time in 18 years that I have not owned a home, and I have always had great credit and paid my bills on time. I appreciate any input you may have on this.

    Thanks.

    • Scott Schang on January 11, 2017 at 3:46 pm

      Hi Doreen, unless you are a military Veteran, the minimum waiting period is going to be 3 years from the short sale for FHA. FHA will not consider divorce an extenuating circumstance. Conventional financing may consider divorce as an extenuating circumstance, which could reduce the waiting period from 4 years, to 2 years.

      The earliest you would be eligible would be September 2017 using traditional financing.

      That said, there are portfolio lenders that will allow you to buy sooner. The down payment requirement (20%), interest rates, and fees are higher that traditional financing options, but it might be a good alternative to waiting.

      You would only keep a loan like this until which time you are eligible for traditional financing.

      If you would like to speak to someone that has experience with these guidelines and programs, you can send me an email to scott@findmywayhome.com, and I can try to point you in the right direction.

      • Doreen on January 11, 2017 at 5:10 pm

        Can you clarify what traditional financing options are? Are you meaning conventional loans with higher down payments? Such as 20%?

        • Scott Schang on January 11, 2017 at 7:20 pm

          Yes, of course. Traditional financing refers to Fannie Mae, FHA, VA, USDA loans. These are nationally recognized underwriting guidelines that all lenders follow. Conventional financing only requires 3% down payment in some cases, 5% in other.

          Traditional financing is contrasted by portfolio lenders that cannot be underwritten to Fannie Mae, FHA, VA, or USDA guidelines, and are held by private investors or hedge funds because they cannot be traded on the secondary market.

          Portfolio lenders can create their own guidelines, so they offer exceptions that traditional lenders cannot.

          Hope this helps?

      • Doreen on January 13, 2017 at 3:14 pm

        I just reread this post, which says the conventional financing “may” consider divorce as an extenuating circumstance, which may reduce the waiting period from 4 years to 2 years. I had a mortgage broker tell me something similar and this is what I had been relying on, because I have 8 months to go. However, some mortgage lenders in town keep telling me I must wait 3 years, so I need to find someone who will work with me.

        • Scott Schang on January 13, 2017 at 4:24 pm

          Hi Doreen, yes, an extenuating circumstances exception is very, very tricky, and has more to do with the underwriter than it does with the guideline. Fannie Mae is purposely very vague on this, and divorce alone would not be reason enough for an exception. Did you send me an email with your location? I can see if I can introduce you to someone to talk to.

  159. Mitch on January 10, 2017 at 1:28 pm

    Hi Scott,
    I had a Chapter 7 BK discharged about 5 yrs ago. I kept my primary home and continued to pay the mortgage as agreed. However, I owned a vacation home that the mortgage was included in the BK and foreclosed upon. I qualify for FHA but would rather go conventional. I have been told the foreclosure on the vacation home is an issue with how long I have to wait for conventional loan qualification. What are the waiting periods given the above info? I have a 720 credit score and am putting down 50% on a home purchase of $450,000.
    Thanks!

    • Scott Schang on January 10, 2017 at 1:49 pm

      Hi Mitch,
      If the mortgage on the vacation home was included in the BK, you’re eligible now. Not many lenders get this right. If you shoot me an email to scott@findmywayhome.com, I can introduce you to a lender that has experience with these guidelines and can help you in your State. Please include the State you’re buying in 🙂

  160. Michael on January 6, 2017 at 8:40 pm

    Hi Scott,
    Thanks for all the information you are providing to the masses!
    I had a short sale that closed 3 years ago. There is a new property that I am now interested in purchasing. I don’t qualify for a FHA loan (the sale price is > $100k than the FHA loan limit). Am I understanding correctly that based on new guidelines, I can NOT get a conventional loan in less than 4 years from the date of the short sale regardless of how much I have as a down payment? (I think you could get a conventional loan in 2 years with 20% down payment previously but not any longer, correct?)
    Thanks!

    • Scott Schang on January 7, 2017 at 2:32 pm

      Hi Michael, unless the mortgage was included, and discharged in a bankruptcy, you are correct. The ability to put down 10%, 2 years from a short sale was discontinued in August 2014.

      If you have 20% down, and a good credit score, you may want to consider a portfolio loan? The rates and fees are higher, but it will get you into the home, and you can refinance it out as soon as you hit your 4 year mark for Conventional.

      • Michael on January 7, 2017 at 4:12 pm

        Thank you, Scott!

  161. Breanna Norris on January 6, 2017 at 6:42 pm

    My husband and I filed chapter 7 due to debts incured in previous marriages. It’s been discharged I’ll guess 5-6 months he has strong employment history but still has under 600 credit score and has no late pays on anything on his report… I have like 615 credit score but I’m a stay at home mom I have a few credit cards with no late pays
    We’re wanting to buy a house and I know there are lenders who may do a home loan without waiting 2 years was wondering if you have any advice or could point me in the right direction. Sorry for the Grammer also

    • Scott Schang on January 6, 2017 at 7:16 pm

      Hi Breanna, you can definitely find portfolio lenders that will lend you money with a BK less than 2 years old, but you will not like the terms. You would need a higher credit score than where you’re at now, and a minimum 20% down payment. The interest rates would be close to 8%, and the fees are pretty high, maybe 2% of the loan amount or more.

      I can introduce you to a lender that may be able to give you more information. If you think you could do this, send me an email to scott@findmywayhome.com, include the State you live in, and I will see if I can get you pointed in the right direction.

  162. Chris on January 6, 2017 at 12:02 pm

    My wife and I had to go through a short-sale process a few years ago. We are running into problems though as the Short-Sale is being reported as a foreclosure. It looks as though we can get around this as we have found proof that it was, in fact, a short sale and not a foreclosure. However, making matters worse, the difference of the short sale and what the home actually sold for are showing up on our credit as a collection/chargeoff. Our lender is telling us that if it appears as though we still owe our last lender the difference, even though it has been 3 years, that we will not qualify for an FHA Loan. Is this correct?

    • Scott Schang on January 6, 2017 at 12:29 pm

      Yes, this is entirely possible. It sounds to me like whoever helped you with your short sale did a VERY poor job of reviewing the short sale agreement, and did not inform you that this would occur. I will admit, this is bad, I almost never see this kind of thing.

      Were you sent a 1099 from the lender and taxed on the “shortage”? Is it showing up as a collection, or a chargeoff? There is a difference.

      Last question – was it a FHA mortgage on the short sale?

      • Chris on January 6, 2017 at 12:42 pm

        Hi, thanks for getting back to me! The mortgage was a USDA Loan and says it was an FMHA Real Estate Mortgage. I do not recall receiving a 1099 form for the shortage. Is it possible that I didn’t get one if USDA didn’t know where we moved to?
        In regarards to the collection/chargeoff, I just reviewed the credit report my recent lender ran and it shows a charge off date. But it also has a “Last Dlq MP” code of “Collection-9”

        • Scott Schang on January 6, 2017 at 12:52 pm

          Ok, this is a tough one. Normally, charge-offs are not included in an automated approval. If it’s a collection, and it’s greater than 24 months old, FHA guidelines say that it can be excluded from the decision.

          I cannot find any FHA guideline that specifically addresses if the collection is mortgage-related, if it’s treated differently.

          This is going to be a little bit of a mine-field, and your loan officer is going to have to be battle tested, and be prepared to get creative, and potentially fight with the underwriter.

          What State are you trying to buy in? I may be able to introduce you to someone that can help.

          • Chris on January 6, 2017 at 1:01 pm

            Thanks. We are moving to TN (from Wisconsin). We are building a home and currently have a conditional approval from the builder’s “preferred” lender and none of the outstanding items mention having to worry about it. They are asking for 2016 W2s when they come (since we don’t close until March), signed tax returns, asset reserves verification and a letter why we sold a vehicle, but nothing regarding previous loans.

            What is meant by “charge-offs are not included in an automated approval”? In our specific situation, which is better? A charge-off or a collection? Also, does it matter that we lost the house due to a financial hardship with loss of income greater to 20%? I had a business for a couple of years that took a hard hit which caused the short sale situation.



          • Scott Schang on January 6, 2017 at 3:50 pm

            I think you’re fine. A collection more than 24 months old, or a charge off are not going to affect your approval 🙂



          • Chris on January 6, 2017 at 4:14 pm

            Great, thanks!



          • Chris on January 6, 2017 at 1:09 pm

            For clarification, this “hiccup” came to light when I was seeking information from other lenders, trying to do my due diligence and ensure we getting a good offer as I’m usually hesitant to trust any preferred partners. It’s my experience that although they can make things more convenient, there is usually an added cost to that convenience and I wanted to check things out on my own as well.



  163. Connie on January 4, 2017 at 6:07 pm

    I was told a few months ago that the waiting period for a VA loan after a shortsale (was not VA loan) was 12 months with no dings on credit. Today I was told that is not true. Have the requirements changed in last few months

    • Scott Schang on January 4, 2017 at 6:22 pm

      Hi Connie, the real issue with VA regarding short sales is that it does not address the issue. Some lenders interpret that VA not looking at short sale as a “financial hardship”, some lenders will still require the 2 year waiting period for BK and foreclosure. So the short answer is, nothing has changed, and it is completely possible to be eligible to use your VA benefit after a short sale.

      There are also many other compensating factors that will be considered when looking at this.

      What State are you trying to buy in? If you shoot me an email to scott@findmywayhome.com, I may be able to introduce you to a lender that I know can help.

      • Connie on January 4, 2017 at 7:16 pm

        Nevada Scott and thanks for response. The shortsale just closed October 14 2016

        • Scott Schang on January 4, 2017 at 7:18 pm

          Shoot me an email. Let me see if I can find someone that can help. Were there late payments on the mortgage prior to the short sale? Was the mortgage included in a BK?

          • Connie on January 4, 2017 at 8:11 pm

            Payments were late payments, 6 years as we were with an attorney and trying to get loan modifications but they kept selling the loan and we had to keep starting over…long story. No BK.



          • Scott Schang on January 4, 2017 at 8:43 pm

            Ok, you’re going to need at least 12 months of no late payments before you would have any chance at getting an automated underwriting approval.



          • Connie on January 5, 2017 at 5:30 am

            Thanks Scott!



        • Scott Schang on January 26, 2017 at 9:56 am

          Hi Connie, I have a VA expert friend in NV. I can make an introduction, and maybe he can help? Send me an email to scott@findmywayhome.com and I will introduce you through email.

  164. kim on January 4, 2017 at 11:00 am

    Thank you…. FHA requires you to pay all collections (> 2k) in full prior to approval….right?

    • Scott Schang on January 4, 2017 at 11:42 am

      Hi Kim, that guideline was changed in 2015 (i believe), so it’s slightly different. Medical collections are not counted against you, as well as any collection that is older than 24 months old.

      If you have collections less than 24 months old that collectively add up to over $1,000, the loan would be downgraded to a manual underwrite and the underwriter will require letters of explanation, and determine whether or not the collections were the result of financial mismanagement or a one time event that is unlikely to happen again.

  165. kim on January 4, 2017 at 8:36 am

    Hi Scott… I filed CH 13 in Sept 2013 that included in my mortgage. It was dismissed in Jan 2015 because the payments were too high. The lender foreclosed on Oct 2015 and the property was sold to an investor in Oct. 2015. I purchased a home via a private lender and it will be paid off Dec 2017. I am interested in selling my current home and purchasing my main home via conventional financing in FL. What are my timelines? I will have about 30% as downpayment.

    • Scott Schang on January 4, 2017 at 10:51 am

      Hi Kim, conventional financing is going to require a 4 year waiting period from the dismissal of the bankruptcy. And because the BK was dismissed, the foreclosure is going to require a 7 year wait from the date your name was removed from title.

      Your best (soonest) option is going to be using FHA financing, 3 years from the foreclosure date.

  166. ScottSchang on November 17, 2016 at 12:30 pm

    BeckySherwood1 Hi Becky, there is a way to buy right away, but it’s expensive.  Using a portfolio loan, you can buy 1 day out of bankruptcy, but you’ll see higher rates and fees, and it will require at least a 20% down payment.  I think that in most cases, this makes sense to do.  It’s a temporary measure to get you into a home, start taking advantage of the savings, equity and tax benefits of ownership, until you can refinance into a more traditional loan.
    The soonest you could qualify for traditional financing would be 2 years from the discharge for FHA or VA financing, 3 years for USDA, and 4 years from the discharge for Conventional financing.
    Hope this helps?

  167. BeckySherwood1 on November 17, 2016 at 12:11 pm

    Hi
    We had a ch. 7 bk that discharged 9/2016. We’ve never had a mortgage, have a solid rental history and financially stable before and after the bk. We filed because a collection company quit working with us after a year of payments for hospital bills. When the garnishment started to put us in hot water, we filed. We did keep our car loan and that has actually helped our credit score. We would like to buy sooner rather than later. Do we really have to wait 2 years or is there a way to do this sooner?

  168. ScottSchang on November 17, 2016 at 9:30 am

    Jkidahofalls The only option that may allow you to buy now would be USDA financing, if the home is in a USDA eligible area.  FHA is not at all friendly about making exceptions on the waiting periods.
    You can also approach the seller and ask if they will allow you to rent the place for the next 5 months.  It’s a negotiation that will have to be a “win/win” for all parties, but if you’re only 5 months away, you may be able to work it out?
    Hope this helps?

  169. ScottSchang on November 17, 2016 at 9:24 am

    Wes41 The waiting period to be eligible for a conventional loan after a foreclosure has always been 7 years.  In August of 2014, that guideline was modified to allow you to ignore the 7 year waiting period if the mortgage was included, and discharged in a bankruptcy, and the foreclosure happened after the discharge of the bankruptcy.
    You could be eligible for FHA financing 3 years from a foreclosure.
    Hope this helps?

  170. Wes41 on November 17, 2016 at 5:25 am

    When did the foreclosure waiting period for conventional loans increase to 7 years?

  171. Jkidahofalls on November 16, 2016 at 8:24 pm

    Hi Scott! We filed Chapter 7 bankruptcy which discharged November 2013, but then to get the title from our name a short sale was completed in April 2014. We are beyond ready to buy again, are there any options for us to buy again now? Preferably FHA. I’ve read things saying they may make exceptions under the 3 year mark. Any help or suggestions are much appreciated. We’ve found a home that we really want to buy and don’t want to lose it by waiting another 5 months if possible.

  172. ScottSchang on November 16, 2016 at 6:34 pm

    belindaelaine You are eligible now using Conventional financing.  FHA is going to require a 3 year waiting period from the date of the foreclosure.  If you would like, I can introduce you to someone that understands the guidelines, and can lend in your state.  Shoot me an email to scott@findmywayhome.com if you would like that introduction

  173. belindaelaine on November 16, 2016 at 6:24 pm

    Hi Scott, I filled Chapter 7 bankruptcy in 2011. The home was foreclosed on 2015 and title was taken out of my name. How long do I have to wait to buy a home with a conventional loan? I was told by a mortgage co. I have to wait 7 years. Please tell me this is not true. I am ready to buy now.

  174. HAMP71 on November 16, 2016 at 2:57 am

    Hello. My Chapter 7 was discharged in 2013; which did not include my home and auto loans. Both the mortgage and auto finance companies are no longer able to report my payments to the credit bureaus for the life of the loans because, though they were not included, they weren’t excluded. I have no late payments and the loan was modified. How long will I have to wait to get another mortgage? I’m hoping to buy a condo and rent my current unit out.

  175. htate2373 on November 14, 2016 at 5:23 am

    I filed a chapter 7 bankruptcy in 2010 which included my house. I used my VA loan to purchase the property. I want to purchase another home using my VA loan again and the last house is still in my name, what can I do.

  176. Jamlaw on November 11, 2016 at 3:57 pm

    Hi
    In was discharged from chapter 7 bankruptcy in 2011. I’ve remained in my home since making payments, some late. The bank sent me notice to modify the Loan and put me on a modified trial. At the end of the trial they wanted me to sign I didn’t. Now I’ve received notice to contact them regarding the modification in 60 days. I’m not going to sign because I don’t want it to be misconstrued as if I re-affirmed. I’m now ready to move on and my credit is goid was was told the deed is in my name. “At this point I need to save money, how long is the process for foreclosure, how long is deed for keys, and short? If I do any will I be able to stay during the duration the bank takes to transfer deed? Will any of the above show up my now re-established credit?

  177. ScottSchang on November 11, 2016 at 9:41 am

    jacco44 If the home was never foreclosed, meaning title never changed hands, then you would follow the “loan modification” guidelines.  Most lenders will require that 2 years passed since the modification if there was a significant manipulation of the principal balance like deferral, or forgiveness.  The other part to this is that you have to have made your payments on time since the modification.
    The short answer is NO, you do not have to wait 7 years.  The long answer is that there are several other variables to consider when narrowing down the exact time when you could refinance (or buy?)
    If you would like to dig into this deeper, feel free to shoot me an email to scott@findmywayhome.com and I”m happy to help you figure this out.

  178. jacco44 on November 11, 2016 at 5:19 am

    If a mortgage was subject to foreclosure, but was never ultimately foreclosed upon, do you still have to wait 7 years for a conventional mortgage?  The house was never ultimately foreclosed upon because of a loan modification.

  179. ScottSchang on November 10, 2016 at 9:59 am

    ARTY03 A foreclosure would not necessarily show up on your credit report, however, the the payment history leading up to the default on the mortgage should be reporting.  If the foreclosure did not result in a taxable event, and if the lender has not pursued a deficiency judgement for any losses they may have incurred, then I don’t know if you necessarily “need” to file bankruptcy.  That would only restart your waiting periods.
    You are eligible to buy now using FHA financing.  You would be unable to qualify for Conventional financing until 7 years from the foreclosure date, which would put you at January 2020.  Bankruptcy will only cause you to be ineligible for FHA financing, and will not shorten your Conventional waiting period.
    Hope this helps?

  180. ARTY03 on November 9, 2016 at 9:20 pm

    We went through a foreclosure in Jan 2013 We’ve been told by people that we should file bankruptcy. The foreclosure stilldoesn’t show up on any of our credit reports. The only debt we have is my husbands student loans. Cars paid for and we’ve been in the same rental since ‘2013. Is it necessary to file for bankruptcy? We would like to purchase a home again by seot 2017.

  181. ScottSchang on November 7, 2016 at 4:57 pm

    mam16 That is incorrect information.  If you shoot me an email to scott@findmywayhome.com I can introduce you to a lender that understands the guidelines and can help.

  182. mam16 on November 7, 2016 at 4:54 pm

    ScottSchang mam16 It does, but our lender in Georgia told us because the foreclosure mortgage was a “government backed loan” (Fannie Mae), we had to wait the seven years to even apply for a FHA loan.  That was incorrect information?

  183. ScottSchang on November 7, 2016 at 4:50 pm

    mam16 Your waiting period is determined by the type of loan you are applying for, not the loan that was on the home that went into foreclosure.  Yes, the 3 year waiting period would apply.  If the mortgage was included in a Bankruptcy prior to the foreclosure, then that waiting may be reduced if you wanted to use Conventional financing.
    Hope this helps?

  184. mam16 on November 7, 2016 at 4:33 pm

    My husband had a Fannie Mae-backed loan that went into foreclosure 5 years ago.   Would we qualify for a FHA loan with the 3 year waiting period or do we need to wait for 7 because it was a Fannie-Mae loan?

  185. ScottSchang on November 7, 2016 at 2:41 pm

    JustinDavidson Hi Justin, your instincts are completely correct.  VA guidelines require a 2 year wait from the date your name is removed from title.

  186. JustinDavidson on November 7, 2016 at 12:39 pm

    I have a Fannie Mae loan. I qualify for a VA loan. If I do a Deed in Lieu of Foreclosure, who standard of wait time do I follow? The way I see it, if I go for another conventional loan then I would follow its terms but what If I’m going for a VA loan?

  187. ScottSchang on November 6, 2016 at 4:50 pm

    Derrick107 First order of business, Thank you for your service!  It might be worth it to try to attempt to get an extenuating circumstances exception because this qualifies as a one time experience that resulted in significant loss of income.  The documentation process can be a hassle, but it might be worth it if you’re eager to buy before 2 years.
    If you would like, I will do a little more research and see what the manual underwriting guidelines say.  If you can shoot me an email to scott@findmywayhome.com , and let me know the State you’re buying in, and I will see if I can introduce you to someone that can help you buy as soon as possible.
    Also, VA allows 100% financing, so you should save your down payment, unless you absolutely need to use it, it’s better off as reserves than sinking it into equity that you cannot access in an emergency.
    Hope this helps?

  188. Derrick107 on November 6, 2016 at 4:05 pm

    ScottSchang Derrick107 I was renting a house and never had a mortgage. My Chapter 7 was a result of my wife getting injured at work and we fell behind  on bills. So we filed a chapter 13 last August and I paid one full year of no miss payments. When my wife was unable to recover from her injury my lawyer suggested converting to chapter 7 and we just got a discharged a week ago. 
    We have a current FICO score of 690 and will have a 20k down payment when we are eligible to buy. I’m a veteran and have never used my VA secured loan process.

  189. ScottSchang on November 6, 2016 at 1:12 pm

    Derrick107 Hi Derrick, both FHA and VA are going to require a 2 year wait from the discharge of a bankruptcy.  When you say you have no mortgage, did you have a mortgage prior to the bankruptcy?  If so, the lien would have survived the BK, and may cause that waiting period to be extended.

  190. ScottSchang on November 6, 2016 at 1:09 pm

    Love22 Unless your rental property was included in a bankruptcy, there are not many options other than a portfolio loan.  A portfolio loan does not follow fannie mae or FHA guidelines, so it will allow reduced times for short sales, but that comes at the expense of higher rates and fees which may be counter productive to meeting your goals.
    If your mortgage was included in BK, you would be eligible for conventional financing 4 years from the discharge.  If it was not included in a BK, you would not be eligible for conventional financing until 4 years from the short sale date.
    Hope this helps?

  191. Jose1982 on November 5, 2016 at 8:54 am

    Hello,
    I saw you post on Find My Way Home which has great
    information. I have one particular situation that I could use some guidance. My
    name is Jose  and I live in North Carolina. I have purchased a home in 2013
    in North Carolina using FHA but I also owned a FHA home in New Jersey which I was
    renting. After I moved in to my home in North Carolina, the tenant in New
    Jersey bailed on my other home. This created a financial bind.
    The house in New Jersey was bought before the recession for an
    amount of 130k and now the house is worth only around 40k. The house could not
    be sold through short sale per the bank. I have paid for the home for a short
    period of time in hopes to renting it but could not find a new tenant. I
    consulted an attorney and I was advised to file for chapter 13 bankruptcy.
    I completed the chapter 13 plan and have been discharged
    from same for two years now. The house in New Jersey was included in the
    chapter 13 and now I’m not financially responsible for the property. The credit
    report for that credit line shows zero balance and also says included in chapter
    13. The bank has refused to foreclosure on the home.  
    While in chapter 13 I made all payments to my current home
    and vehicles I use without missing a single payment.  My wife and I now have a little one. We have
    found out that the house we live in now, is just too small for our growing
    family. I am exploring on putting my house up for sale to buy a bigger one for
    the family.
    With that be said, can I purchase a new home with a credit
    score of above 715 and with about 10k down payment? Will the house in New
    Jersey hinder me on buying a new home in North Carolina due to the bank not
    taking back ownership? I don’t have any financial responsibility for the home
    in New Jersey after being discharge. Any information will help. What would be
    my options? Thank you so much.

  192. Love22 on November 5, 2016 at 7:45 am

    I did a short sale on a rental property in May 2016. My credit score is 680. I am interested in refinancing my primary residence mortgage. It is an ARM with PMI. I have never been delinquent on this mortgage. What are my options?

  193. Derrick107 on November 2, 2016 at 7:55 pm

    I received my chapter 7 discharge yesterday I have no mortgage and would like to know how long do I have to wait for a VA, FHA mortgage as of today?

  194. HAMP71 on November 2, 2016 at 1:32 pm

    Hello Scott. I filed Chapter 7 in 2012, which was discharged in 2013; which did not include my home and auto loads. Both the mortgage and auto finance companies are no longer able to report my payments to the credit bureaus for the life of the loans because, though they were not included, they weren’t excluded. I have no late payments and the load was modified. How long will I have to wait to get another mortgage? I hoping to buy a condo and rent my current home out. Thanks in advance for any help you can provide.

  195. amyp1118 on November 2, 2016 at 11:02 am

    Hi Josh. Thanks for your response. The bank came to us and asked if we wanted to modify before the chapter 13 was discharged. We did the trial period and the actual modification went into effect Feb 2014. We have not missed or been late on any payments. Their is nothing on our credit report. No sign of the chapter 13 or loan mod under public reports. Under the mortgage company the loan does say non government modification but it also say up to date and current. Thanks for your help

  196. Josh Lewis CMC on November 2, 2016 at 10:55 am

    amyp1118 Hi Amy, based off the Ch. 13 waiting periods you should be good as of August of this year assuming the payment history to the bankruptcy court is good and there are no late payments after the bankruptcy. Based on your scores, it sounds like that would be true. The issue with your mortgage is a little more complex and will depend on how the account reports on your credit. Does it show current with no late payments since the modification? When was it modified? Let me know where you are located and I can connect you with someone who can help! josh@findmywayhome.com.

  197. amyp1118 on November 2, 2016 at 6:49 am

    Hello. We want to apply for a conventional loan. Our scores are in the 700s. We filed chapter 13 7 1/2 years ago and it was discharged successfully in August 2014. We did not include our mortgage. Our mortgage came to us and ask if we wanted to remodify our loan only lower interest and extend term. We were two payments behind that they included into it. We have been successfully paying on that for almost 3 years with no late payments. Do you think the bank would have a problem giving us a loan?

  198. Successwoman on November 1, 2016 at 8:50 am

    I would like to but a house in 9 months from now, but I have a major issue, I claimed bankrupt in April, 2013 and it was discharged, a put my house down on this due to the fact that my ex refuse to pay, which lead to a divorce and me having to claim bankrupt.  The problem is the deed got transferred out of his name and my maiden name only a year ago.  Are there any other option that I have to purchase a home by October 2017.  My credit score isn’t the problem because it’s over 690.  I believe the waiting period is 3 years from the date it was transferred over.  I need to know because I’m renting and need to know my options before I sign another lease for another year.

    Please advise

  199. Tspaxton on October 30, 2016 at 2:22 pm

    Also, what is a grant deed. How long does this typically take? Thank you so much for your advice I really appreciate it.

  200. Tspaxton on October 30, 2016 at 11:32 am

    Ok I sent you an email. Thanks

  201. ScottSchang on October 30, 2016 at 10:47 am

    Tspaxton shoot me an email to scott@findmywayhome.com and I will introduce you to someone that may be able to help.

  202. Tspaxton on October 30, 2016 at 10:44 am

    I’m trying purchase in Georgia. The deed and mortgage are both in my name. With the first mortgage I suggested putting the deed in my name and they said it wouldn’t matter because the mortgage is still in my name. what should I do?

  203. ScottSchang on October 30, 2016 at 10:22 am

    Tspaxton Hi Tanya, are you on title to your mom’s home, or only on the mortgage?  You may be able to do a grant deed removing you from title, then you would not have to count your mother’s home against your debt to income ratios.  I would ask your lender if they’ve thought about this route.
    What State are you trying to buy in?

  204. ScottSchang on October 30, 2016 at 10:18 am

    simba1 You should be eligible for FHA financing now.  The waiting periods are 2 years for the BK, and 3 years from the foreclosure.  Because the old loan was also FHA, it’s typically a little longer than 3 years, because it does not start the waiting period until the FHA mortgage insurance is paid from the previous foreclosure.
    Either way, you should not have any challenges as long as you’re using a lender familiar with these guidelines.
    If you would like an introduction to someone that can help, shoot an email to scott@findmywayhome.com and I can try to get you pointed in the right direction.

  205. Tspaxton on October 30, 2016 at 6:52 am

    Hi Scott,
    My situation; filed BK (chapter 7 in Georgia) in Oct 2010, discharged in Jan 2011.
    Foreclosure included in BK deed was finally transferred out of my name Aug 2013.
    My moms home is in my name and was included in BK. She makes payments and it has not foreclosured. All payments made on time.
    Question; I’m trying to buy a home for myself and am having great difficulty getting approved. I’m currently under contract for a condo, they have my earnest money yet the mortgages company has said no after they initially approved me and I went and put a contract on a condo! They say that my moms home, even though it was not reaffirmed AND it was included in the bankruptcy, they are counting that loan on my moms home as a mortgage I already have. What do I do? I’m so upset and stressed out. I’ve gone to 3 different lenders. Will I ever be able to purchase a home for myself again? This condo is only $165,00. Please help. Tanya

  206. simba1 on October 29, 2016 at 7:53 pm

    I bought a house in 2005 and had to foreclose and declare bankruptcy in 2011.This house was through FHA loan.Can I get a loan from FHA again. I have a credit rating of around 700  and have been paying all my bills. Please guide.

  207. ScottSchang on October 28, 2016 at 3:18 pm

    Smile1234 ok, I know a couple of loan officers that may be able to help.  Do you mind shooting me an email with your situation and contact information to scott@findmywayhome.com – I will make an introduction through email.

  208. Smile1234 on October 28, 2016 at 2:26 pm

    ScottSchang Smile1234  Orlando Florida. Thank you 🙂

  209. ScottSchang on October 28, 2016 at 2:07 pm

    Smile1234 Your instincts are right, you want someone with experience that is willing to fight this fight for you.  Your loan officer is not wrong that it is very difficult.  What State are you trying to buy in?  I can see if I know anyone that I can introduce you to that has experience with extenuating circumstances

  210. Smile1234 on October 28, 2016 at 1:31 pm

    ScottSchang Smile1234  Yes it is helpful and Thank you for the fast response.
    I do have medial records that align with the timelines. My situation is I have a credit score of 665 and my DTI is pretty low under 30%. I was working with a broker and they said they didn’t see any issues with getting it approved through a conventional 95 (can’t do an FHA because of the loan limits in my county are $274k) The home we want to build is just under $400k. We found the house well… the builder picked out our house we wanted to purchase and signed the contract. Of course contingent to the loan approval. I received a call from the broker saying she didn’t think it was going to work. Because the multiple BK would need to be over 5 years.  I did some research on my own and found out about the extenuating circumstance possibility. I called her back and she was very reluctant to move forward with trying,  she said it almost never works. At this point I am looking for someone with experience in situations like mine and  that would go to bat for me.

  211. ScottSchang on October 28, 2016 at 1:09 pm

    Smile1234 Were those bankruptcies dismissed or discharged?  It’s possible that you can get an approval with extenuating circumstances, it really just depends on if you can produce the paperwork to align with the timelines, and decrease of income, leading to the filings.  If it were me working with you, I would definitely consider pursuing that extenuating circumstances exception due to the fact that medical issues typically meet the definition of a one time event, completely outside your control.
    Another option might be using FHA financing 2 years from the dismissed Chapter 7.  FHA doesn’t appear to differentiate between a dismissed and a discharged bankruptcy.
    Hope this helps?

  212. Smile1234 on October 28, 2016 at 11:13 am

    Hi Scott,
    Have you seen a conventional loan get approved with an extenuating circumstance? We had a Chapter 13 dismissed in 2011 and a Chapter 7 dismiss in 2013. Both due to serious medical issues.

  213. ScottSchang on October 27, 2016 at 9:27 pm

    austinloyd Hi there, thanks for the question – The soonest you would be able to buy using a traditional loan (as opposed to a portfolio loan), would be 4 years from the discharge date of the bankruptcy, as long as the mortgage was included, and discharged.  FHA is going to require 3 years from the foreclosure date.  
    There may be one other option, but it’s only available if you’re buying in a USDA eligible area.  USDA has a guideline similar to conventional, except that it’s only a 3 year wait from the discharge of the BK.

  214. austinloyd on October 27, 2016 at 9:19 pm

    Hi Scott,
    I filed chapter 7 bancruptcy with a mortgage included back in 2013 it was discharged on 11/27/2013, but the bank did not for close until 03/2016. I have rebuilt my credit have 700ish scores with very little debt I am currently renting. TIRED of wasting my money and want to buy badly how soon will I be eligible for a new home loan, and what program will allow my situation the fastest purchase options.

  215. RoseAlbert1 on October 27, 2016 at 1:13 pm

    I’m Sophie  David by name. I live in Netherlands, i want to use this medium to alert all loan seekers to be very careful because there are scammers everywhere.Few months ago I was financially strained, and due to my desperation I was scammed by several online lenders. I had almost lost hope until a friend of mine referred me to a very reliable lender called Mrs Mary Clark  who lend me an unsecured loan of € 150,000 under 2hours without any stress. If you are in need of any kind of loan just contact him now via:maryclarkservice1@yandex.com I‘m using this medium to alert all loan seekers because of the hell I passed through in the hands of those fraudulent lenders. And I don’t wish even my enemy to pass through such hell that I passed through in the hands of those fraudulent online lenders,i will also want you to help me pass this information to others who are also in need of a loan once you have also receive your loan from Mrs Mary Clark i pray that God should give her long life.

    God bless him forever

    Sophie  David

    Testimony on how i got my loan

  216. ScottSchang on October 25, 2016 at 8:29 am

    Patcha I can definitely help – shoot me an email to scott@findmywayhome.com and I will make an introduction.

  217. Patcha on October 25, 2016 at 7:02 am

    My bankruptcy chapter7 will be 2yrs in Nov. I own a home that is paid off that I am trying to sell. I need a lender in Ohio and fl who handles fha and usda loans as I want to prequalify before I start looking. My credit union added a two year layer for chapter7.I don’t know my real credit score but credit carma has it at 687 and 657 as fair.

  218. MAX1lobo on October 23, 2016 at 6:04 am

    ScottSchang MAX1lobo Good morning Scoot and i want to thank you for the help with my situation,so you mentioned a portfolio loan-will i still need to wait to do this type of loan? I thinking of the tax deduction of owning a house at this point and need to weigh my pro’s and con’s, And know i am just wondering if this is why some of these lenders are saying yes we can get you financed-as the are thinking portfolio loan. Hmmm—So this is my ONLY option at this point correct?  And if i follow through with this portfolio loan should i us my bank or a diff lender-any help on this is appreciated.Do you know any good lender we can work with in Arizona????

  219. activepassive on October 22, 2016 at 5:33 pm

    ScottSchang activepassive
    Thanks so much for the info!!! I think we will just have to have them go ahead with getting the loan for us but that will affect rates because it will be viewed as an investment property, correct? Man, it’s so hard to get back on your feet!

  220. ScottSchang on October 22, 2016 at 5:28 pm

    MAX1lobo The challenge is that most loan officers do not encounter this often enough to have really explored, and fully understand all of the guidelines, for each loan type.  It’s not a malicious attempt to mislead people, it’s simply inexperience, and not having the sense to do their homework, or say “I don’t know, let me do some research”.

  221. ScottSchang on October 22, 2016 at 5:26 pm

    MAX1lobo No, it is not.  A mortgage is only in default if you stop making payments.  Bankruptcy does not make the loan go away, it simply protects you from any taxable event, or attempt at collection in the event that you are unable to make the payments and go into default.

  222. ScottSchang on October 22, 2016 at 5:17 pm

    activepassive unfortunately, adding a co-signer only helps you meet debt to income requirements, it will not affect the waiting periods.  You can most certainly have your parents buy the home and then sell it to you subject to the existing loan.  This basically just means that you make the payments on the mortgage.
    Was there a bankruptcy prior to the deed in lieu by any chance?

  223. activepassive on October 22, 2016 at 4:56 pm

    Scott,
    If I just finished up a deed-in-lieu within the past six months, what are my options? Could I be approved if I have my parents co-sign a loan or should they just take it out in their name and I pay for it? HELP!

  224. ScottSchang on October 22, 2016 at 3:53 pm

    MAX1lobo The reason other loan officers are not asking is because they don’t know to ask.  I literally speak to people every day that the loan officer didn’t ask that question, and the escrow fell out just before closing because of it.  You can read through this thread and you’ll hear plenty of stories very similar to yours.
    If the home was never foreclosed, and you didn’t do a short sale or deed in lieu of foreclosure, then you probably still own that home, and the mortgage is in default.  Do you remember if the loan that you discharged through bankruptcy was a FHA loan or not?
    This seems like it might get a little more complicated before it becomes more clear.  If you would like, shoot me the address to the home included in BK, and I will look up public records to see if you still own it.
    My email is scott@findmywayhome.com – please include your full name, and the address of the home.
    I promise you that I’ve done this many times, and I know the guidelines.  We will get you pointed in the right direction!

  225. MAX1lobo on October 22, 2016 at 3:21 pm

    Hi yet Again Scott-LOL just got off the phone with another lender that returned my call and he say 3 year wait after foreclosure, even though the discharge was 2 years ago with the home included-WOW-These lenders need to pull their heads out and get schooled up on this.
    I have even explained it to my bank and they said yes they can finance me now after my 2 year discharge wait. WTH

  226. MAX1lobo on October 22, 2016 at 2:53 pm

    One more question sir,is it considered defaulted after bk discharge.

  227. MAX1lobo on October 22, 2016 at 2:51 pm

    ScottSchang MAX1lobo
    A little confused here Scott,yes the house was in the bk7 and we stopped making payments before the chap 7 was filed.i am not sure that if we are on the title or not,are some lenders more forgiving than others in this situation? No one seems to be asking me if the title is in my name or not. Thanks in Advance.

  228. ScottSchang on October 22, 2016 at 1:10 pm

    MAX1lobo Yes, that is correct, AND this is why so many people lose time and money working with lenders that do not know what they are talking about.  The Bankruptcy waiting period IS 2 years, however, you cannot use FHA financing if you are still on title to a defaulted loan.
    If the mortgage is current, and the loan on that home is NOT a FHA loan, then it might be possible to buy another home if you can afford both payments on both homes.

  229. ScottSchang on October 22, 2016 at 1:05 pm

    MAX1lobo If you are expecting the home to be foreclosed on, I am assuming that you stopped making payments after the bk?  If so, you would need to have your name removed from title before you would be eligible to buy using traditional financing methods.
    There are several ways you can accomplish this.  The first way is to wait for the bank to foreclose…which is where you’re at right now.  The other two ways would be to do a short sale (if you owe more than the home is worth), or contact the lender and negotiate a deed in lieu of foreclosure, also known as “cash for keys”.
    Once your name has been removed, your timeline for buying again will depend on the type of financing you are applying for.  If you are applying for FHA financing, FHA is going to treat the removal of your name from title by any way other than the lender being paid in full as a separate event from the bankruptcy, and will require a 3 year wait from the date of the foreclosure, short sale or deed in lieu.
    For Conventional financing, you can ignore the date your name was removed from title (as long as the mortgage was included, and discharged), and you would be eligible in 4 years from the discharge of the bankruptcy.
    Based on your question, it sounds to me like your best, and quickest option is going to be conventional financing.  This gives you the next 24 months to resolve the title issue.
    If you are motivated to buy sooner than the four years, it is possible using a portfolio loan.  A portfolio loan will have higher rates, higher fees, and require a larger down payment, but it will allow you to get into the home, and allow you to take advantage of the tax deduction, and forced savings benefits of homeownership.
    Hope this helps?

  230. MAX1lobo on October 22, 2016 at 9:38 am

    Hi again Scott,just want to add that i just got off the phone with Home mortgage alliance and he confirmed that it is 2 year after my discharge that included my house -but the house has not foreclosed  on yet..Is this correct He said (FHA)?

  231. MAX1lobo on October 22, 2016 at 7:12 am

    Hi Scott,we filed chap 7 bk and included our house in the bk-it has been 2 years since the discharge this month,can we now purchase a home?  I’m hearing many different stories about this from lenders. WHAT ARE MY OPTIONS-THE HOME HAS NOT FORECLOSED ON YET.

  232. ScottSchang on October 21, 2016 at 7:05 pm

    Jenjewell My pleasure 🙂  I would start talking to a loan officer sooner than later.  I would keep the money, and pay down the credit cards more slowly.  With a debt to income ratio of 23%, you would not need to pay off cards for that reason.  If your balances are too high on those cards, that may be affecting your credit scores.  
    If you’re using FHA financing, your credit stores are good where they are at.  If Conventional financing is a better option for you, you may want to strategically pay down revolving credit lines to give your credit scores a push.  You will save thousands in interest and closing costs by increasing your credit scores from where the are at now.
    I can introduce you to someone I know and trust if you would like?  If you would like an introduction, shoot me an email to scott@findmywayhome.com and let me know what State you’re buying in.

  233. Sbegley on October 21, 2016 at 6:45 pm

    Hi,
    Are there any other programs for loans after foreclosure?
    Is there really only fha loans available?

  234. Jenjewell on October 21, 2016 at 5:57 pm

    We haven’t met with one yet…our lease is us 2/28 so we have 3 almost 4 months until then. Our debt/income ratio is right around 23% but obviously would come down a lot if we paid the CC off but then that would leave us with less of a down payment. I just know that we definitely don’t have 20% saved up for a down payment. We are currently looking to buy around $135,000 house. Just thought I would pick your brain first!!! Thanks for taking the time to answer me back 🙂

  235. ScottSchang on October 21, 2016 at 5:49 pm

    Jenjewell Great question!  I wouldn’t make that decision until you have the loan officer review your credit, and determine which loan program best suits your needs.
    For instance, a higher credit score is going to save you a ton of money if you’re using conventional financing.  If you need to use FHA financing because of debt to income ratios, then your 644 is “good enough”, and I would use that money for down payment.
    What is your loan officer recommending?

  236. Jenjewell on October 21, 2016 at 5:35 pm

    Hi Scott! Back in April 2009 I foreclosed on a “house flipping” job. Since then I successfully sold my home I actually lived in. I’ve been repairing my credit and it’s back up to 644 now. I have $16,000 coming in soon… but I also have 2 maxed out credit cards totaling $6000…my question is should I pay off all debt and use $10,000 on down payment? Or should I pay off half of my debt and use $13,000 for a down payment? That is IF we even get approved for a loan.

  237. ScottSchang on October 21, 2016 at 10:28 am

    Seanclrls Yes, that is correct.  3.5% might be available if your loan balance does not exceed $417,000 and you have at least 20% equity.  You would be eligible for the best rates that are available, there is no penalty or expense because of the short sale.
    I am a lender in California, if you would like me to run some numbers for you, shoot me an email to scott@findmywayhome.com
    Hope this helps?

  238. Seanclrls on October 21, 2016 at 7:14 am

    Hi Scott, we short sold our home in the end of November 2012. We purchased another house in December 2014 using a portfolio loan at 5.5%. Am I correct in thinking we can refinance with a conventional loan at the end of November (4 years)? If so, can we expect to get the current 3.5% rates? We have perfect credit other than short sale, around 720-730 now. We are in northern Cal.

  239. ScottSchang on October 19, 2016 at 5:25 pm

    Jan279 Were either of those mortgages discharged through a bankruptcy?  If not, you would have the option of either FHA, VA or USDA financing for your refi.  At a 7% rate now, you’re looking at potentially cutting that in half!
    What State are you in?  I may be able to introduce you to someone that is familiar with these guidelines and can help you explore your options.  If you are interested, shoot me an email to scott@findmywayhome.com and I will help in any way I can.

  240. Jan279 on October 19, 2016 at 5:19 pm

    we’re looking to refi our firsth mortgage with a 7% rate. We had 2 foreclosure in 2012. Please advise

  241. ScottSchang on October 18, 2016 at 9:33 am

    Ssimpson9272 That guideline does not exist for FHA.  Only Fannie Mae, Freddie Mac or USDA will allow you to use the BK discharge date.  FHA is going to consider the BK and the subsequent default as two separate events, with two separate waiting periods.  
    The waiting period for FHA will be 3 years from any foreclosure, short sale or deed in lieu.
    Is there any reason you cannot use Conventional financing?

  242. EvanW1966 on October 18, 2016 at 8:39 am

    Hello Scott,
    I’m not sure if you can help?  Here’s the situation…
    We had a Chapter 7 Bankruptcy discharged in April of 2009 (New Jersey). 
    Both our mortgages were included in Bankruptcy petition and discharged
    in Federal court.  *We tried to reaffirm the debt but the Property had a
    negative equity of $200,000.  According to our attorney, the judge
    would NEVER allow such a reaffirmation agreement.
    After our Chapter 7 discharge, the Lender accepted mortgage payments
    from us provided we agreed to have an auto-pay from our checking
    account.  Lender NEVER required that we reaffirm the discharged debt and
    our names still remain on the deed.  We’ve been making voluntary
    payments since 2009 with the hope that someday the home equity would
    return.  As of today, our home’s equity is still negative over $100K. 
    We attempted a refinance to at least reaffirm the loan to a FIXED rate;
    however, the Lender is NOT willing to lower the mortgage balance to
    match the current equity…
    Our Financial Advisor and CPA advised that we should simply buy a new
    home but we are having a VERY hard time getting a mortgage. The debt has
    been discharged since 2009; however, the fact that our names are still
    on the deed and we’ve made volunteer payments for over seven years is hurting us?
    Do
    you have specific underwriting guidelines that we can look at?  I can’t
    find anything online which addresses our specific set of
    circumstances…  We have reestablished credit and we are able to finance with 20% down or more?  I haven’t any idea why this is so difficult?
    Any insight to this will be very well appreciated!
    Thank you!

  243. Ssimpson9272 on October 18, 2016 at 5:33 am

    Hi Scott. Can you please tell me what mortgagee letter references the ability to go off the BK discharge date & not the foreclosure deed date with FHA. Has this recently changed? Thank you

  244. Ssimpson9272 on October 18, 2016 at 5:30 am

    Hi Scott. Can you tell me where to find the FHA guideline saying we can go off the BK discharge date & not the foreclosure deed date for an FHA loan.

  245. ScottSchang on October 12, 2016 at 12:38 pm

    stephaniecollins711 The waiting period depends on the type of loan that you are applying for, and yes, FHA is going to be 3 years from the foreclosure date.  If the mortgage was included, and discharged through a bankruptcy, you may be able to use the BK discharge date and ignore the deed in lieu date.  Lastly, if you are eligible for a VA home loan, the wait is only 2 years.
    Hope this helps?

  246. stephaniecollins711 on October 12, 2016 at 7:21 am

    Hi Scott,
    Our deed in Lieu went through on July 15 2015. Can you verify that we have to wait 3 full years to apply for a new home loan? FHA or otherwise. Thank you! We are in Illinois.

  247. ScottSchang on October 11, 2016 at 7:05 pm

    TFAMCF Yes, I am a mortgage lender in California, and I have several options available.  When you’re ready to run numbers, shoot me an email to scott@findmywayhome.com and we can explore what that might look like.

  248. TFAMCF on October 11, 2016 at 6:30 pm

    ScottSchang TFAMCF Thank you Scott. Are there any good Portfolio loan options in California that we should consider. We really want to buy again within the next 6 months if possible.

  249. ScottSchang on October 10, 2016 at 9:30 pm

    Jrush Yes, that’s correct, unless the mortgage was included in a bankruptcy that was discharged more than four years ago?  It sounds like you might be using FHA financing?  If so, you can start the process, but you would not be able to secure a FHA case number until after the 3 years is up.
    This shouldn’t prevent your lender from pre-approving you.  If you would like an introduction to a different lender, shoot me an email to scott@findmywayhome.ocm
    Hope this helps?

  250. ScottSchang on October 10, 2016 at 9:21 pm

    TFAMCF because your bankruptcy was dismissed, and not discharged, the foreclosure would need to be the event from which all waiting periods are measured.  The waiting period will depend on what type of financing you are applying for.
    In the order of soonest to longest, if you or your husband are eligible for VA housing benefits, your wait is only 2 years from the foreclosure.  For USDA or FHA financing, it’s a 3 year wait from foreclosure date.  Conventional is a bit down the road at 7 years.

  251. TFAMCF on October 10, 2016 at 8:59 pm

    Hello Scott,
    My husband lost his job and we could no longer afford our mortgage. We filed Chapter 13 bankruptcy in an attempt to save our home, we were unsuccessful in obtaining a payment that we could afford so we dismissed the Chapter 13 in 2013. Our foreclosure was completed in January of 2016. How long do we have to wait to purchase another home?
    Thanks!
    FC

  252. Jrush on October 10, 2016 at 8:52 pm

    We had a forclosure and it will be 3 years as of 10/31/16. We were told we cannot apply for pre-approval loan until the 3 years is up. We are in Wisconsin.

  253. ScottSchang on October 9, 2016 at 6:06 pm

    NatalieR If the seller will allow you to assume the loan, or carry a loan note for 3 years until you can refinance, those are both options that do not necessarily need a lender involved.
    You should discuss your situation with the seller first and see what their motivation for selling is, and if they are open to working with you. That will give you a much clearer path, and make your choices easier.
    I do know people in AZ, but I’m not sure if they can do portfolio loans, I will find out for you.  Please send me an email to scott@findmywayhome.com and I will be happy to make an introduction if needed.

  254. NatalieR on October 9, 2016 at 5:07 pm

    Scott,
    We didn’t file bankruptcy, so it was just a straight (and very long) short sale.  What you suggest, would that be assuming the loan? Or more like a rent-to-own option?  And can you tell more information about a portfolio loan?  We live in AZ, so I’m not sure who does that here.
    Thanks!

  255. ScottSchang on October 9, 2016 at 4:40 pm

    NatalieR is there any chance you filed bankruptcy prior to leaving the home?  If so, your waiting period may be shortened using Conventional financing.
    There are ways to do this, first and foremost is simply starting a conversation with the seller.  Explain your situation, and look for a “win-win” scenario.  How much do they owe on the home?  Would they be willing to accept a rent payment higher than market in order to have an option to buy the home at the end of a specific period?  
    There is also always a portfolio loan.  A portfolio loan could get you up to 75% to 80% of the value of the home.   The rates and fees are higher than a traditional loan, but if it can help you accomplish your goal, it might be worth it as a temporary situation.
    Hope this helps?

  256. NatalieR on October 9, 2016 at 4:12 pm

    Hello Scott,
    The short sale of our house was approved just a few months ago in August 2016.  We bought it at the peak in 2005 with an FHA loan and lost it due to my unemployment, family illness and frankly, it became a money pit. So we literally moved on. We have been renting a lovely house for a few months that and recently, our landlord said they would like to sell it within the year. They are offering us first dibs. After reading your comments, it seems we aren’t not eligible for an FHA loan for three years. What are our other options for buying? I just love it here and hate to leave. I appreciate your help.

  257. ScottSchang on October 8, 2016 at 4:08 pm

    RachelDunlap There are no options until you get your name off title, regardless of the bankruptcy.  FHA is going to count this as a totally separate event from the bankruptcy, with a separate waiting period (3 years from the date your name is removed).  
    Using Conventional financing, you would be eligible 4 years from the discharge of the bankruptcy, as long as your name is removed from title.
    I can definitely introduce you to someone that is familiar with these guidelines, and never would have allowed you to go into contract with a FHA loan.  I’m so sorry you had to experience that lack of professionalism and expertise.
    Feel free to shoot me an email scott@findmywayhome.com and I can make an introduction.
    Hope this helps?

  258. RachelDunlap on October 8, 2016 at 11:48 am

    Hi Scott, I had a bankruptcy which was discharged I 2012 and the home was included in the bankruptcy. I was preapproved for an fha loan and had a p&s, deposit, inspection and all. They asked me for the final foreclosure document or HUD doc. and come to find out, there was a notice of sale in 2015, but after calling around found that aThird party bought the property but it hasn’t closed yet, so as far as the county is concerned I’m still on the deed. I was denied the loan because the foreclosure has to be within 3 years, though it’s still not finished. I thought if it was included in the bankruptcy it was not an issue. I’m in CT, would you know anyone that could help?

  259. ScottSchang on October 6, 2016 at 12:22 pm

    HartHoliday In terms of the waiting period before you would be eligible for a home loan, there is no difference between a short sale, or a deed in lieu of foreclosure.  A deed in lieu may give you the ability to have better control over the timeline, and possible even receive money from the bank to help you move out.
    I would also check with your tax professional and make sure that one of these options does not create a taxable event.
    Hope this helps?

  260. HartHoliday on October 6, 2016 at 12:04 pm

    I am considering a short sale of Deed in lieu of…which was is the best option for a resident of Alabama?

  261. ScottSchang on October 6, 2016 at 9:08 am

    Cworsnop If you deeded the home to your ex husband, then you should not be showing up on title?  A quit claim is one way to do it, but a transfer deed is a better legal instrument to use.  Also, how the assets are divided, and who is responsible as described in the divorce decree can play a big role in how an underwriter will look at this scenario.
    I can only do business in California, and if you were trying to buy in California, I would try to get you approved under the Fannie Mae guideline, 4 years from the discharge of the bankruptcy.  It sounds to me like your name should be removed from title.
    If you would like to shoot me an email to scott@findmywayhome.com I can introduce you to someone that can help in the State that you’re buying in.  Also, if you send me the address to that home in NV, I can look up public records and let you know if you are still on title or not.
    Hope this helps?

  262. Cworsnop on October 6, 2016 at 3:47 am

    Hi Scott,
    Divorced 2012 and filed bk7 2012. I did not reaffirm. Ex husband remained in home making no payments. Home still has not been foreclosed on. I signed quit claim deed August 2016 trying to put all this behind me. When am I eligible to obtain mortgage. Credit score 690 to 705. Thanks

  263. ScottSchang on October 4, 2016 at 2:11 pm

    KAM2016 Extenuating circumstances are very subjective.  An individual lender can have different tolerances for what it will allow as an exception.  The question an underwriter is going to ask is “why” did you suddenly have to close the business?
    If you would like to email me directly, we can discuss this further.  If you don’t mind sharing your hardship / story in public, we can keep the conversation here and maybe it will help others.
    My email is scott@findmywayhome.com

  264. KAM2016 on October 4, 2016 at 1:45 pm

    Hi Scott,
    We suddenly had to close our business (restaurant) and ended up filing Chapter 7. Does this fall into extenuating circumstances for a FNMA? (one time occurrence, out of our control, currently both W2 employees). We are close to the 2year mark to be able to purchase using FHA, but since the max is 271,050, it won’t get us much in our area. I was hoping to not have to wait the four years. Our current home was not a part of the Chapter 7, however, we did have to do a modification. Thank you for your insight.

  265. ScottSchang on October 3, 2016 at 11:42 am

    Carolc1 Yes, ONLY if you are using Conventional financing.  FHA considers the BK and the short sale as two separate events, with two separate waiting periods.

  266. Carolc1 on October 3, 2016 at 11:36 am

    Doesn’t the bk date override the short sale date? For waiting periods I mean?

  267. ScottSchang on October 3, 2016 at 11:35 am

    Carolc1 Your waiting period will depend on the type of financing you are applying for.  FHA financing is going to require a 3 year waiting period from the date the short sale was recorded.  Conventional financing will allow you to buy 4 years from the discharge of the BK, and ignore the short sale date.  There are not many lenders that will do this though.  
    If you would like, shoot me an email to scott@findmywayhome.com and I can introduce you to someone that can help.

  268. Carolc1 on October 3, 2016 at 11:32 am

    What if you included the fha home in backruptcy in 2011 and home wasn’t shirt sales until 2016. When does the waiting period start?

  269. ScottSchang on September 27, 2016 at 4:16 pm

    js510mx I would encourage you to speak to a lender now.  There wouldn’t be any cost or obligation, and you would be able to “credit and income” qualify, all you would have to do is wait out the waiting period.
    Your lender can determine your debt to income ratio, and if there are any challenges, you will have time to resolve those, and be in a position to buy once your waiting period is up.
    There is no downside to getting pre-approved now.

  270. js510mx on September 27, 2016 at 4:05 pm

    We haven’t talked to a lender yet. My 3 yrs is up in Dec, so I’m just trying to get all my ducks in a row. Didn’t think it would be worth talking to a lender yet. Not sure what to do.

  271. ScottSchang on September 27, 2016 at 3:56 pm

    js510mx Ok, I’m so sorry, I understand your question now.  I would apply first, and let the lender tell you whether or not you will qualify.  What you’re specifically referring to is your debt to income ratio.  USDA does not have loan limits, it has income limits, which in turn determine the amount you qualify for.
    Depending on your qualifying income, if you are unable to qualify, then putting money down is one option.  Paying down your liabilities on your credit report is another option.  Which of these options is best really just depends on how much help you need to get your debt to income ratio in line.

    You may find out that you do not have to do either of these options, you may find out that you have to do both.  What is your lender telling you?

  272. js510mx on September 27, 2016 at 2:56 pm

    We are buying in Michigan. Looking at a rural development loan. Just wondering if paying down any last debtvwould help more than putting 10k down

  273. ScottSchang on September 27, 2016 at 2:52 pm

    js510mx FHA financing will allow you to buy 3 years from a short sale.  The downpayment requirement is only 3.5% of the purchase price.  What State are you buying in?  If you shoot me an email to scott@findmywayhome.com , I can introduce you to a lender that understands these guidelines, and can help.

  274. js510mx on September 27, 2016 at 2:34 pm

    Hi, I’m looking at buying a house 3yrs after a short sale. What would be best/help get approved, money down or no credit card debt? Thanks

  275. ScottSchang on September 27, 2016 at 2:11 pm

    Malone T Yes, that is accurate, and Yes, I can introduce you to someone in NY that can help.  Do you mind shooting me an email (copy and paste your question), and I will make an introduction.
    Hope this helps?

  276. Malone T on September 27, 2016 at 12:53 pm

    I have a Chapter 7 that will be discharged 4 years in Oct. My house included in the Ch 7 wasn’t foreclosed on until about a year ago and is now completely out of my name. I see that they updated the conventional (Fannie mae) requirements on 7/29/14 to eliminate waiting periods for subsequent foreclosures. Do you know any banks in NY that give a mortgage in this circumstance? Credit clean since ch7 score in mid 600s.

  277. ScottSchang on September 23, 2016 at 3:05 pm

    ChristineWolfe no problem at all!  I do not believe that FHA’s Back to Work program will be extended.  
    It wasn’t a very popular or effective program (in my opinion) and many lenders refused to even offer it because the burden of proof in order to get the exception was just too difficult for most people to meet.
    Conventional (Fannie Mae) is much more flexible with extenuating circumstances.  Before back to work, FHA required either the death of a primary wage earner, or the permanent disability of a primary wage earner in order to get an extenuating circumstances exception.
    Fannie Mae has always considered lay-off, reduction of income, and even loss of income through divorce as potential circumstances worthy of consideration for an exception to the waiting periods.
    I apologize if we’ve already had this conversation, but what was your hardship?  and what are the dates/timelines?  If you would like to keep it private, shoot me an email to scott@findmywayhome.com and let’s see if we can pin down an exact timeline, and any potential opportunity to speed up that timeline.
    Hope this helps?

  278. ChristineWolfe on September 23, 2016 at 2:48 pm

    So sorry for not explaining better. What I want to know is will the back to work program be extended in 2017? But it is good to know that these guidelines won’t change much.

  279. ScottSchang on September 23, 2016 at 8:51 am

    ChristineWolfe Hi Christine, which program are you referring to?  The waiting period guidelines are not programs that will expire.  They may change, or be modified in some way, but it’s not likely.
    My personal opinion is that these guidelines will not change in 2017.

  280. ChristineWolfe on September 23, 2016 at 7:34 am

    Are they going to extend this program next year into2017?

  281. bigdream1956 on September 22, 2016 at 3:53 pm

    Hi Scott:

    I read this column with great interest.
    We filed Chapter 13 bankruptcy in 2010 due to my loss of job.  We fulfilled the terms of the bankruptcy and it was discharged as completed as agreed.  Our house was included in this (as we were going through the process of trying to get the servicing company to come to the table and do a refinance).  After being told by a superior court judge they had no obligation to meet with us (against the statute at the time), they finally foreclosed on the house in August of 2012, and we w