Since 2007, when homes began to depreciate, and with the ensuing mortgage problems, a lot of homeowners went through a foreclosure, short-sale or bankruptcy. The question for those people that went through one of those events, is “When can I buy a home again?” The answer is always “it depends on how have you managed your credit since one of those events occured” AND “what type of loan are you attempting to obtain?”
Below are some “general rules of thumb”. As with all types of financing, things can change overnight, so check with your local lender. As of 1/15/2013 here are the best answers to your questions…
Can I Buy A Home Again with a Conventional Loan After A Short Sale?(Fannie Mae)
If you have a 20% down payment, you can buy a house again 2 years after short-sale.
If you have at least a 10% down payment, but less than a 20% down payment, you can buy another house four-years after a short sale.
And, if you have less than a 10% down payment, you can buy another house seven years after a short sale. For loans backed by Freddie Mac you can get a regular LTV loan after 4 years.
Can I Buy A Home Again with an FHA Loan after a Short Sale?
You need to wait for 3 years after short-sale to qualify for an FHA loan. (Currently, 3.5% minimum down payment) Some exceptions may apply if you were not late on any mortgage or installment debt 12 months prior to the short-sale debt.One caveat to three year wait period is that, you should not have any bankruptcy or foreclosure prior to the short-sale.
Can I Buy A Home Again with A VA Loan after a Short Sale?
You need to wait for 2 years after a short-sale to qualify for another VA loan.
Can I Buy A Home Again with a Conventional Loan After A Foreclosure?
A seven-year waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.
Can I buy a Home Again with an FHA Loan After A Foreclosure?
You need to wait for 3 years after the foreclosure to qualify for an FHA loan.
If the loan secured by the foreclosed property was not an FHA loan, the foreclosure time frame is measured from the foreclosure completion date.
If the loan secured by the foreclosed property was an FHA loan, the three year time frame is measured from the date FHA paid the insurance claim.
With Chapter 7 bankruptcy you need to wait for 4 years before which you can qualify for a conventional mortgage. With Chapter 13 bankruptcy 24 months must elapse from the discharge date or 48 months from the dismissal date.
Can I buy a Home Again with an FHA Loan After Bankruptcy?
The wait period for an FHA loan after Chapter 7 bankruptcy is two years.
Can I buy a Home Again with a VA Loan After Bankruptcy?
Two years wait period is required after chapter 7. For Chapter 13 bankruptcy – one year into payment plan is required with all payments made on time. A court permission to enter into a new mortgage is required too.
If you have any other questions about these issues…
call /text Kevin at 719 331 3123 or email me at email@example.com
call /text Laurie at 719 205 1520 or email me at firstname.lastname@example.org
If we don’t have the answers, we will contact our favorite lender(s) in your area, and get you answers.