Waiting Period After Bankruptcy And Foreclosure

All mortgage loan programs have mandatory waiting period after bankruptcy and foreclosure for a home loan borrower to qualify for a residential mortgage loan.  The question is when does waiting period after bankruptcy and foreclosure start?  Waiting period after bankruptcy and foreclosure differs depending on the mortgage loan program.  For example, the waiting period after bankruptcy and foreclosure is different for FHA Loans than it is for Conventional Loans.

Waiting Period After Bankruptcy For FHA Loans

For FHA Loans, there is a minimum of a two year waiting period after Chapter 7 Bankruptcy to qualify for a FHA insured mortgage loan.  The two year waiting period after Chapter 7 Bankruptcy starts from the discharged date of the Chapter 7 Bankruptcy and not the Chapter 7 filing date.  There is a one year waiting period after Chapter 13 Bankruptcy to qualify for a FHA Loan with the Chapter 13 Bankruptcy Court’s approval.  The start date of the waiting period is from the Chapter 13 Bankruptcy effective date.  For Conventional Loans, there is a two year waiting period to qualify for a Conventional Loan from the Chapter 13 Bankruptcy discharged date.  With a Chapter 13 Bankruptcy dismissal, there is a four year waiting period to qualify for a Conventional Loan.  The waiting period starts from the Chapter 13 Bankruptcy dismissal date.

Waiting Period After Foreclosure And Deed In Lieu Of Foreclosure To Qualify For FHA Loans

There are mandatory waiting period after foreclosure and deed in lieu of foreclosure to qualify for FHA Loans.  There is a three year waiting period after the recorded date of foreclosure and deed in lieu of foreclosure to qualify for FHA Loans.  The waiting period time clock does not start from the day that the property was surrendered.  The waiting period time clock starts from the date of the sheriff’s sale or from the date the deed to the home was transferred out of the home buyers name and into the lenders name or the new home buyers name.

Waiting Period If Mortgage Was Part Of Bankruptcy For FHA Loans

If you had a mortgage part of bankruptcy and want to qualify for a FHA Loan, the waiting period starts from the recorded date of the foreclosure and not the date of the Chapter 7 Bankruptcy  discharged date even though your mortgage was wiped off on your Chapter 7 Bankruptcy discharge.

Waiting Period After Bankruptcy For Conventional Loans

If you are interested in qualifying for a conventional loan and have a prior Chapter 7 Bankruptcy, there is a four year waiting period after bankruptcy discharged date to qualify for a conventional loan.  If you had a mortgage part of bankruptcy, you can qualify for a conventional loan four years after the discharged date of your bankruptcy even if the foreclosure was recorded at a later date after your Chapter 7 Bankruptcy.  There is a two year waiting period after Chapter 13 Bankruptcy discharged date to qualify for a conventional loan.  There is a four year waiting period to qualify for a conventional loan after a Chapter 13 Bankruptcy dismissal date.

Qualifying For Conventional Loan After Foreclosure, Deed In Lieu Of Foreclosure, Short Sale

There is a seven year waiting period to qualify for a conventional loan to qualify for a conventional loan after a foreclosure.  There is a four year waiting period after a short sale from the short sale date reflected on the HUD Settlement Statement to qualify for a Conventional Loan.  There is a four year waiting period after deed in lieu of foreclosure to qualify for a conventional loan to qualify for a conventional loan.  The waiting period starts from the recorded date of the deed in lieu of foreclosure and not the date that the keys were surrendered to the mortgage lender.

If you are a first time home buyer and/or seasoned home buyer looking for a mortgage lender with no mortgage lender overlays, contact Gustan Cho Associates at 261-716-8151.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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