Below is a helpful chart that explains the mandatory waiting periods required by various loan programs.

The waiting periods depend on the circumstances and sometimes the down payment you're applying on the new loan. If you have specific questions, please feel free to contact us.


Useul Tips
 
Loan Type
Negative Credit Event
Prior to the date of Application**
Foreclosure
Short Sale/Deed in Lieu of Foreclosure
Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
Conventional
• 7 years from completion date 
• 3 years from completion date if the borrower puts 10% down *
•4 years from the date the deed to the property was transferred back to the servicer. No LTV/CLTV limitations.
•A reduced recovery period (greater than 2 years) may be considered with extenuating circumstances.*
• 4 years from date bankruptcy was completed 
• 2 years from date bankruptcy was completed*
• 2 years from date bankruptcy was completed 
• 4 years from the date of dismissal by a judge and written permission from BK court to enter into mortgage transaction (requires manual downgrade also)
FHA
• 3 years from completion date 
• Less than 2 years but not less than 12 months from completion date*
• 3 years from completion date 
• Wait period not required if borrower is current on mortgage/debts & is not taking advantage of declining market conditions
• 2 years from date bankruptcy was completed
• Less than 2 years, but no less than 12 months the date bankruptcy was completed*
• 1 year payout has elapsed & payment performance is satisfactory and written
permission from BK court to
enter into mortgage
transaction (requires manual
downgrade also)
VA
• 2 years from completion date 
• Between 12-23 months from completion date*
• 2 years from completion date
• 2 years from date bankruptcy was completed 
• Between 12-23 months from the date bankruptcy was completed*
• 1 year payout has elapsed & payment performance is satisfactory and written permission from BK court to enter into mortgage transaction (requires manual downgrade also)
USDA
• 3 years from completion date 
• 3 years from completion date 
• 3 years from date bankruptcy was completed 
• 1 year from date of repayment was completed and bankruptcy completed and written permission from BK court to enter into mortgage transaction (requires manual downgrade also)
*What events might qualify as extenuating circumstances? Agency specific requirements apply for extenuating circumstances which may allow for a shorter recovery period. The qualifying threshold for extenuating circumstances is very conservative& these are considered on a case by case basis.
 
**Recovery period must have elapsed prior to the date of the application. When a TBD converts to an originated loan and the application is completed/dated; a new file, credit report and AUS may be required.
 
Contact Me to Evaluate Your Current Circumstances.
 
   

Consultant

 

Michael Patterson
NW Area Manager
Office: 425.289.1102 (Office)
Cell: 206.423.4000
Fax: 206.984.0325
NMLS #69386
Email Me
Visit My Web Site

 
       
For complete licensing information, please click: NMLS: #69386 | Company NMLS #1796

 

 



Subject to change without notice. For educational purposes only and not to be construed to be legal advice. Land Home Financial Services, Inc. (also known as “Land Home” or “Land Home Financial”) is an Equal Housing Opportunity Lender. Call your loan officer for details. Rates, Program, Fees, and Guidelines are subject to change without notice. Restrictions apply. Not a commitment to lend. The information, loan option scenarios, and/or guidelines are for illustrative/marketing purposes only and will vary depending on circumstances, terms may not apply to every situation. Land Home only conducts business in states we are approved to. Land Home Financial Services, Inc. 22525 SE 64th Place, Suite 220, Issaquah, WA 98027. Washington Consumer Loan Branch Office License #CL-89331. Corp. NMLS #1796. www.nmlsconsumeraccess.org Date 1-14-15

Land Home Financial Services, Inc. (also known as "Land Home" or "Land Home Financial") is an Equal Housing Opportunity Lender. Call your loan officer for details. Rates, Program, Fees, and Guidelines are subject to change without notice. Restrictions apply. Not a commitment to lend. The information, loan option scenarios, and/or guidelines are for illustrative/marketing purposes only and will vary depending on circumstances, terms may not apply to every situation. Land Home only conducts business in states we are approved to. Land Home Financial Services, Inc. 22525 SE 64th Place, Suite 220, Issaquah, WA 98027. Washington Consumer Loan Branch Office License #CL-89331. Corp. NMLS #1796. www.nmlsconsumeraccess.org. This site is not authorized by the New York State Department of Financial Services.  No mortgage loan applications for properties in the state of New York will be accepted through this site.