A common question that Washington State home buyers and sellers are asking today is, “How long must I wait before applying to purchase a home after a bankruptcy, foreclosure or short sale?” Many consumers are being told they cannot purchase a home for 7-10 years following a foreclosure, bankruptcy or short sale, and that simply is not correct.
Below I have broken down the underwriting guidelines for qualifying for a mortgage after a bankruptcy, foreclosure and short sale.
Depending on how long you want to wait, you have options. But more importantly, let me stress the importance of credit repair, financial education, and a squeaky-clear post hardship credit history. Contact me directly (or see below) for more information on how I am personally helping clients clean-up their credit, permanently removing past derogitory reportings (bankruptcies, forecloures, and short sales).
Washington State FHA Mortgage
– Chapter 7 Bankruptcy: 2 years from date of discharge
– Chapter 13 Bankruptcy: 1 year of the payout must elapse, and payment history must be perfect. Buyer must receive permission from the court to enter into a mortgage
– Foreclosure: 3 years from the completion/sell date
– Short Sale: 2 years from the completion date if the loan was NOT in default. 3 years is the loan was in “default” status
Washington State VA Mortgage
– Chapter 7 Bankruptcy: 2 years from date of discharge
– Chapter 13 Bankruptcy: 1 year of the payout must elapse, and payment history must be perfect. Buyer must receive permission from the court to enter into a mortgage
– Foreclosure: 2 years from the completion/sell date
– Short Sale: 2 years from the completion date if the loan was NOT in default. 3 years is the loan was in “default” status
Washington State USDA Mortgage
– Chapter 7 Bankruptcy: 2 years from date of discharge
– Chapter 13 Bankruptcy: 2 years from the date of discharge
– Foreclosure: 3 years from the completion/sell date
– Short Sale: 2 years from the completion date if the loan was NOT in default. 3 years is the loan was in “default” status
Washington State Conventional Mortgage
– Chapter 7 Bankruptcy: 4 years from date of discharge
– Chapter 13 Bankruptcy: 2 years from the date of discharge
– Foreclosure: 5 years from the completion/sell date
– Short Sale: 2 years from the completion date
For more information on preparing to purchase again after a foreclosure, bankruptcy or short sale, you may contact me directly at (425) 350-7136 or dan.keller@nafinc.com.
CLICK HERE —> For more information on Credit Repair and how I am adding 25-50 points per month and getting short sales, bankruptcies and foreclosures removed from inaccurately reporting on consumer’s credit reports.
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