Qualifying For Conventional Loan After Bankruptcy And Foreclosure

There are mandatory waiting period to qualify for a conventional loan after bankruptcy and foreclosure which is different than the mandatory waiting period to qualify for FHA Loan after bankruptcy and foreclosure.  Conventional Loans are often called Conforming Loans because they need to meet and conform to Fannie Mae or Freddie Mac mortgage lending guidelines.  Fannie Mae and Freddie Mac are the two government sponsored enterprises and the two mortgage giants that sets conventional mortgage lending guidelines.  In order for banks and mortgage companies to be able to sell the residential mortgage loans to Fannie Mae and/or Freddie Mac, those mortgage loans need to conform to the standards and guidelines set by Fannie Mae and/or Freddie Mac.  Mortgage loan borrowers can qualify for conventional loan after bankruptcy and foreclosure as well as deed in lieu of foreclosure and short sale by meeting mandatory waiting period requirements and by having re-established credit after bankruptcy, foreclosure, deed in lieu of foreclosure, and short sale.

Qualifying For Conventional Loan After Bankruptcy

A mortgage loan borrower can qualify for a conventional loan after a Chapter 7 Bankruptcy four years from the discharge date of the Chapter 7 Bankruptcy.  The mortgage loan borrower needs a minimum of a 620 FICO credit score and re-established credit after the Chapter 7 Bankruptcy with no late payments after the Chapter 7 Bankruptcy.

A mortgage loan borrower can qualify for a conventional loan after a Chapter 13 Bankruptcy two years after the discharge date of the Chapter 13 Bankruptcy or four years after a Chapter 13 dismissal date.  The conventional mortgage loan borrower needs a minimum of 620 FICO credit score and re-established credit after the Chapter 13 Bankruptcy with no late payments after the Chapter 13 Bankruptcy discharge and/or Chapter 13 Bankruptcy dismissal date.

Qualifying For Conventional Loan With Mortgage Part Of Bankruptcy

If you had a mortgage part of your bankruptcy, the waiting period to qualify for a conventional loan is four years from the discharge date of your Chapter 7 Bankruptcy.  Your foreclosure can be recorded after the discharge date of your Chapter 7 Bankruptcy discharge date, however, that does not matter and the four year waiting period starts on the discharge date of your Chapter 7 Bankruptcy.  This rule is only for conventional loans and does not apply for FHA Loans or other mortgage loan types.  With FHA Loans, if you have a mortgage part of bankruptcy, the waiting period of three years starts from the recorded date of the foreclosure and not the discharge date of your Chapter 7 Bankruptcy.

Re-established credit and no late payments after the bankruptcy is required and a 620 FICO credit score minimum is required.

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

Conventional mortgage loan borrowers can qualify for a conventional loan after deed in lieu of foreclosure and short sale four years with a 3% down payment.  Minimum credit scores required is 620 FICO credit scores and re-established credit is required.  Conventional mortgage lenders do not want to see any late payments after the deed in lieu of foreclosure and/or short sale.

Qualifying For Conventional Loan After Foreclosure

Conventional mortgage loan borrowers can qualify for a conventional loan seven years after foreclosure with re-established credit and no late payments after the foreclosure.  The seven year waiting period after foreclosure time clock starts from the date of the Sheriff’s sale or the date where the deed of the property was transferred out of their names into the name of either the lender or another home buyer.

Qualify Now For Conventional Loan After Bankruptcy And Foreclosure

If you need to qualify for conventional loan after bankruptcy and foreclosure, contact us at Gustan Cho Associates at 262-716-8151.  Our team of licensed mortgage loan originators have no lender overlays and can help home buyers who have credit issues or with prior bad credit.  We are available 7 days a week, evenings, and holidays.

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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