2017 Buy Again After Bankruptcy, Short Sale, Foreclosure or DIL

by on 1.6.16 in Boomerang Buyers

Updated April 3rd, 2017

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.

2017 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

Find the Right Lender. Find the Right Loan. CLICK HERE FOR HELP NOW!

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

2017 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

Find the Right Lender. Find the Right Loan. CLICK HERE FOR HELP NOW!

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

2017 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 4 of 6

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

Find the Right Lender. Find the Right Loan. CLICK HERE FOR HELP NOW!

2017 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.

Find the Right Lender. Find the Right Loan. CLICK HERE FOR HELP NOW!

2017 Conventional (Freddie Mac) Guidelines – Updated 4/3/17

Bankruptcy (7,11,13) – You may apply for a Conventional, Freddie Mac loan after your Chapter 7 bankruptcy has been discharged for TWO (2) years, or as determined by Loan Products Advisor (AUS)

  • Foreclosure – You may apply for a Conventional, Freddie Mac loan THREE (3) 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 THREE (3) 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 TWO (2) 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.

Find the Right Lender. Find the Right Loan. CLICK HERE FOR HELP NOW!

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.

2017 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.

Find the Right Lender. Find the Right Loan. CLICK HERE FOR HELP NOW!

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.

How Do I Get My Questions Answered?

All lenders are not created equal.  Most of the readers that find this site because they’ve been researching solutions to challenges, and have been told 10 different things by 10 different loan officers.

Find the Right Lender. Find the Right Loan. CLICK HERE FOR HELP NOW!

We’ve created this resource to help you sift through the endless opinions and articles that may, or may not directly answer your question correctly.

There are several ways to ask questions, and get expert opinions on this website.

  • Submit a Question:  On the bottom of this page, you’ll see a prompt that allows you to ask questions.  These questions come directly to me, and are answered very quickly.
  • Leave a Comment:  Below every article is the option to leave a comment or question.  We see this comments and questions in real time and the always answered, usually pretty quickly.

In addition to researching your questions and providing you with expert advice, I may be able to introduce you to a lender friend that I know has experience with your specific situation and can help.

2,077 Comments
  1. 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.

    comment by Harris
    on 4.30.17 at 2.56 pm
    1. 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 [email protected] 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?

      comment by Scott Schang
      on 4.30.17 at 6.47 pm
  2. 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.

    comment by Harris
    on 4.30.17 at 2.51 pm
  3. 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.

    comment by Ralph
    on 4.28.17 at 12.21 pm
    1. 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 [email protected], 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?

      comment by Scott Schang
      on 4.28.17 at 3.49 pm
  4. 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

    comment by Angie and Chris Kelly
    on 4.27.17 at 11.33 am
    1. 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 [email protected], I can introduce you to a lender that has experience with these guidelines. I think you are eligible to buy now!

      Hope this helps?

      comment by Scott Schang
      on 4.27.17 at 2.16 pm
  5. 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?

    comment by Rosemarie T
    on 4.27.17 at 9.04 am
    1. 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?

      comment by Scott Schang
      on 4.27.17 at 1.48 pm
  6. 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.

    comment by Steven
    on 4.26.17 at 6.16 am
    1. 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 [email protected] 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?

      comment by Scott Schang
      on 4.26.17 at 10.23 am
  7. 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!

    comment by Holly
    on 4.19.17 at 9.48 am
    1. 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 [email protected], with the State you’re buying in, and I can try to point you in the right direction.

      Hope this helps?

      comment by Scott Schang
      on 4.19.17 at 11.56 am
  8. 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.

    comment by Kim
    on 4.19.17 at 8.31 am
    1. 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 [email protected]

      Hope this helps?

      comment by Scott Schang
      on 4.19.17 at 9.53 am
      1. Thank you, Scott. The mortgage on the foreclosure was not discharged in a bankruptcy. I’ve also sent you an email.

        comment by Kim
        on 4.20.17 at 5.45 am
  9. 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

    comment by Lucas
    on 4.18.17 at 7.11 am
    1. 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 [email protected]

      comment by Scott Schang
      on 4.18.17 at 7.25 am
  10. 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

    comment by Chris
    on 4.9.17 at 7.50 pm
    1. 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?

      comment by Scott Schang
      on 4.9.17 at 8.07 pm
      1. 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

        comment by Greg
        on 4.12.17 at 3.15 am
        1. 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?

          comment by Scott Schang
          on 4.12.17 at 10.06 am
  11. 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.

    comment by Caren
    on 4.5.17 at 8.28 pm
    1. 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?

      comment by Scott Schang
      on 4.5.17 at 9.01 pm
  12. 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

    comment by Hope
    on 4.5.17 at 9.13 am
    1. comment by Scott Schang
      on 4.5.17 at 10.43 am
  13. •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?

    comment by Lisa
    on 4.4.17 at 12.38 pm
    1. 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 [email protected] and I can introduce you to a loan officer that has experience with Freddie Mac and can help.

      comment by Scott Schang
      on 4.4.17 at 1.03 pm
      1. Thanks Scott, I will send a private email.

        comment by Lisa
        on 4.4.17 at 2.14 pm
  14. So Fredie Mac does not use bankruptcy date if a home loan was included in the bankruptcy? They go by two separate dates?

    comment by JT
    on 4.4.17 at 10.20 am
    1. Hi JT,

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

      comment by Scott Schang
      on 4.4.17 at 1.00 pm
  15. 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!!

    comment by Jennifer N.
    on 4.2.17 at 11.38 am
    1. 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 [email protected], 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?

      comment by Scott Schang
      on 4.2.17 at 11.50 am
  16. 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?

    comment by Chi
    on 3.30.17 at 1.25 am
    1. 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.

      comment by Scott Schang
      on 3.30.17 at 11.35 am
  17. 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?

    comment by Sylvia
    on 3.27.17 at 9.52 pm
    1. 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 [email protected]. 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?

      comment by Scott Schang
      on 3.28.17 at 10.53 am
X
Contact
Your message has been sent.
Oops! That doesn't seem right.
X
Share
Email to a Friend
Your message has been sent.
From
To
Message
X
Create an Account
Your account has been created.
Check your email for additional account details.
Save
Searches
Add
Notes
Rate
Properties
Invite Someone to Your Search
Share your favorite properties and notes, and begin receiving suggestions based on joint activity.
X
Property Alerts
Your property alert has been saved successfully.
X
Reset Your Password
An email has been sent to you with additional details for resetting your password.
X
Request a Showing
Your request has been submitted. An agent will be in touch with you shortly to confirm the showing details.
Your Info