Foreclosure: 1-3 years from completion date. (As little as 1 year if borrower qualifies for “Back to Work” see Mortgagee Letter 2013-26 for qualifying criteria.)
Short Sale Deed-In-Lieu: 3 years from completion date.
Chapter 7 bankruptcy: 2 years from discharge date.
Chapter 13 bankruptcy: 2 years from discharge date. (Anything less than 2 years but greater than 1 year must be downgraded to a manual underwrite.)
VA Requirements
Foreclosure: 2 years for loan amounts < $417,000 – 7 years for loan amounts > $417,000.
Short Sale: 2 years for loan amounts < $417,000 – 7 years for loan amounts > $417,000.
Chapter 7 bankruptcy: 2 years for loan amounts < $417,000 – 7 years for loan amounts > $417,000.
Chapter 13 bankruptcy: 1 year if the repayment period has elapsed, 7 years for loan amounts > $417,000. (Applicant must also receive written permission from the bankruptcy court/trustee to enter into a mortgage transaction – if not minimum waiting period is 2 years.)
USDA Requirements
Foreclosure: 3 years from completion date.
Short Sale: 3 years from completion date.
Chapter 7 bankruptcy: 3 years from discharge date, 1-year possibility with proven extenuating circumstances.
Chapter 13 bankruptcy: 1 year of the repayment period has elapsed. (Applicant must also receive written permission from the bankruptcy court/trustee to enter into a mortgage transaction – if not minimum waiting period is 2 years.)
Conventional
Foreclosure: 7 years from completion date, 3-year possibility with proven extenuating circumstances.
Short Sale: 4 years from completion date, 2-year possibility with proven extenuating circumstances.
Chapter 7 bankruptcy: 4 years from discharge or dismissal date, 2-year possibility with proven extenuating circumstances.
Chapter 13 bankruptcy: 2 years from discharge date 4 Years from dismissal date, 2-year possibility with proven extenuating circumstances.
