1. When Are You Eligible To Finance Again After
A Bankruptcy, Foreclosure Or Short-Sale?
Many people have been harmed by the recent financial crisis, and as a result have experienced a short-sale,
foreclosure, or even a personal or business bankruptcy. It is good to know that there is financial life after this
type of credit calamity!
If you or someone you know has experienced one of these issues you may be able to buy and finance
a home or an investment again -even now. Here are the time frames that need to pass from the date of the
event until the time you are eligible to finance a property once again:
CONVENTIONAL LOANS
Short-Sale
• You can buy 2 years after a deed-in-lieu or short sale - up to a maximum
of 80% loan-to- value for both investment and owner-occupied home
• Your wait period is 4 years for a 90% loan-to-value (owner occupied only)
Foreclosure
• 7 years after a foreclosure
• After 7 years; no waiting period
Bankruptcy
• 2 years after date of discharge for Chapter 13
• 4 years for Chapter 7 bankruptcy
FHA LOANS
Short-Sale
• You can buy IMMEDIATELY after a short-sale if your short-sale confirmed
as “paid in full” and payments were kept current at the time of the short sale
and the short sale was NOT an FHA loan
• You can purchase 3 years from the recorded date if in default at the time of
the short sale
Foreclosure
• Waiting period is 3 years after a foreclosure
Bankruptcy
• 1 year after a Chapter 13 bankruptcy and 2 years after the date of
discharge for a Chapter 7 or 11 bk
VA LOANS
Short-Sale
• You can buy IMMEDIATELY after a short-sale if your short-sale confirmed as “paid in full” and
Thom MacFarlane
Mortgage Banker- Home Loan Broker
NMLS #282091
CA DRE #01210469
Email: thom@sibloans.com
Office: 858-485-0462
Fax: 866-408-1408
www.homeloanwisdom.com
www.sibloans.com
Poster ID on SDCIA:
homeloanwisdom
payments were kept current at the time of the short sale
• You can purchase 3 years from the recorded date if in default at the time of the short sale
Foreclosure
• Waiting period is 2 years after a foreclosure
There may be some lender requirements in having established new credit and/or having limited derogatory since a
negative event, but the he bottom line is that a very large segment of the people who have experienced adversity
through a short-sale, foreclosure or even a bankruptcy - can buy again!
“San Diego Creative Investor Association make no warranties regarding vendor products or services offered.”