New 2015 Guidelines On Mortgage Part Of Bankruptcy

There are specific waiting periods to qualify for a mortgage after a bankruptcy and foreclosure.  Both Fannie Mae and HUD had different guidelines to qualify for a residential mortgage loan after a bankruptcy and foreclosure.  For FHA loans, there is a mandatory waiting period of two years after bankruptcy to qualify for a FHA loan from the date of the bankruptcy discharge date.  There is a three year waiting period after the recorded date of a foreclosure that is reflected on the county records to qualify for a FHA insure mortgage loan.  If you have a mortgage part of bankruptcy on the bankruptcy, you need to wait two years to qualify for a FHA loan from the discharge date of the bankruptcy and a three year waiting period from the recorded date of the foreclosure even though if the mortgage part of bankruptcy.  Even if your mortgage part of bankruptcy and the mortgage loan balance was wiped off and charged off on your bankruptcy, the waiting period does not start until three years from the recorded date of the foreclosure and/or the date of the sheriff’s sale under FHA mortgage lending guidelines.  The good news for conventional mortgage loan applicants is that Fannie Mae came out with new mortgage lending guidelines on those having their mortgage as part of bankruptcy.

Good News For mortgage Part Of Bankruptcy For Conventional Loans

The great news for conventional mortgage loan applicants is that if you had a mortgage part of bankruptcy is that the waiting period starts from the date of the bankruptcy discharge date regardless when the foreclosure is recorded or when the date of the sheriff’s sale is.  In general, if you have a standard foreclosure, there is a 7 year waiting period from the recorded date of foreclosure to qualify for a conventional mortgage loan.  However, effective late this year 2014 and going into 2015, if you have your mortgage part of bankruptcy, the waiting period start clock starts from the date of the bankruptcy discharge date.  There is a four year waiting period to qualify for a conventional mortgage loan if you have a mortgage part of bankruptcy and the waiting period time clock starts from the discharge date of the bankruptcy.  The minimum down payment required is 5% down payment and no late payment after the bankruptcy is normally allowed and most mortgage lenders expect re-established credit.

Conventional Loan After Deed In Lieu And Short Sale

The traditional 2 year waiting period after deed in lieu of foreclosure and short sale with 20% down payment is no longer in effect as of August 2014.  The new waiting period after deed in lieu of foreclosure and short sale is now 4 years from the recorded date of the deed in lieu of foreclosure and/or the date of the short sale.  Minimum down payment now is 5% to qualify for a conventional loan after 4 years of deed in lieu of foreclosure and/or short sale.

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