When Can I Buy a Home After a Bankruptcy? Foreclosure? Short Sale?

The following information has been provided by:  
 

 Obtaining a Conventional Loan

Ø  Chapter 7 Bankruptcy                            - 4 years from discharge date

Ø  Chapter 14 Bankruptcy                          - 2 years from discharge date

Ø  Foreclosure                                               - 4 years from completion date

Ø  Deed-In-Lieu of Foreclosure                - 4 years from completion date

Ø  Short Sale                                                 - 2 years from completion date

Obtaining an FHA Loan

Ø  Chapter 7 Bankruptcy                            - 2 years from discharge date

Ø  Chapter 13 Bankruptcy                          - 1 year of the payout must elapse & 
                                                                           payment performance must be 
                                                                           satisfactory – buyer must receive 
                                                                           permission from the court to enter into a 
                                                                           mortgage

Ø  Foreclosure                                                - 3 years from completion date

Ø  Short Sale                                                   - ***NOTE: This is a recent 
                                                                         change*** 1 year from completion date 
                                                                             if the  borrower was current at the time 
                                                                             of the short sale on their mortgage   
    

Obtaining a VA Loan

Ø  Chapter 7 Bankruptcy                            - 2 years from discharge date

Ø  Chapter 13 Bankruptcy                          - 1 year of the payout must elapse & 
                                                                           payment performance must be 
                                                                           satisfactory - buyer must receive 
                                                                           permission from the court to enter into a 
                                                                           mortgage

Ø  Foreclosure                                                - 2 years from completion date

Ø  Short Sale                                                   - No specific information on this yet but 
                                                                             assume foreclosure rule of 2 years 
                                                                             applies.   

                                                                             Once this is officially defined, I will 
                                                                             provide an update.

Obtaining a USDA Rural Housing Loan

Ø  Bankruptcy (Ch 7 & Ch 13)            - 3 years from discharge date

Ø  Foreclosure                                                - 3 years from completion date

Ø  Short Sale                                                   - No specific information on this yet but   
                                                                             assume foreclosure rule of 3 years 
                                                                             applies. 

                                                                             Once this is officially defined, I will 
                                                                             provide an update.

I hope this information helps!  One last note, FHA and VA 30 year fixed rates have dropped to 4.250% (with NO POINTS).  If you currently have either an FHA or VA loan, you can do a streamline refinance regardless of the equity, or lack thereof, in your home. 

- Michael McDermott