Financing a Home Purchase after Bankruptcy and/or Foreclosure and Short Sales
Ellen Levy
Friday, March 15, 2019
Here are the current up to date guidelines for FHA, VA, Conventional, and Subprime financing for purchasing a home after derogatory credit.
Bankruptcies:
FHA - 2 years for a chapter 7 BK but allows for shorter time period if the cause was due to circumstances beyond your control (medical illness, death of spouse etc.) Chapter 13 BK has no waiting period as long as borrower has been paying on time for 12 months.
VA - 2 year waiting period but allows for shorter time period if the cause was due to circumstances beyond your control (medical illness, death of spouse etc.)
Conventional - Chapter 7 BK must be discharged for 4 years
Chapter 13 BK must be discharged for 2 years
Subprime financing - No waiting period with a minimum down payment of 15%
Foreclosures:
FHA - 3 years but allows for shorter time period if the cause was due to circumstances beyond your control (medical illness, death of spouse etc.)
VA - 2 years but allows for shorter time period if the cause was due to circumstances beyond your control (medical illness, death of spouse etc.)
Conventional - 7 years
Subprime Financing - No waiting period with a minimum down payment of 30%
1 year waiting period with a 15% down payment.
Short Sales and deed-in-lieu of foreclosure:
FHA - 3 years but allows for shorter time period if the cause was due to circumstances beyond your control (medical illness, death of spouse etc.) or if the borrower is current on their mortgage at the time of the short sale.
VA - 2 years but allows for shorter time period if the cause was due to circumstances beyond your control (medical illness, death of spouse etc.)
Conventional - 4 years
Subprime financing - No waiting period with a minimum down payment of 15%
If you have any questions or need more details, please let me know.