A common question home buyers have today is: How long must I wait before obtaining financing after a short sale, foreclosure or bankruptcy? Below is an overview by loan type of this information.FHA loans:
- Foreclosure: 3 years from completion date
- Short Sale: no restriction if the borrower was current at the time of the short sale and all payments were made OR 3 years after completion date if mortgage was in default at the time
- Bankruptcy: CH 7 is 2 years from discharge date
- Bankruptcy CH 13 is 1 year in repayment plan with court permission
VA:
- Foreclosure: 2 years from completion date
- Short Sale: 2 years from completion date
- Bankruptcy: CH 7 is 2 years from discharge date
- Bankruptcy CH 13 is 2 years from discharge date
Conventional Loans:
- Foreclosure: 5-7 years from completion date
- Short Sale: 2 years from completion date with 20% down payment
- Bankruptcy: 2-4 years from discharge date