Mortgage Financing After a Life Changing Event
Bankruptcy, foreclosure and other life events are bumps on the road to sustainable homeownership. With the recent events of the housing bubble and subsequent crash, many people may want a second chance to be homeowners. These “Boomerang Buyers” (a term often used to describe people who had to rent post-2008 but are returning to the homebuying market now that the economy has improved) may not know all the specifics of required waiting periods after their foreclosure, short sale or bankruptcy.The below chart covers the typical waiting periods associated with these types of events. Of course, as an experienced Loan Officer and Sales Manager at Academy Mortgage, I have seen exceptions occur. Working with the best mortgage team can help you get back into a home faster than you may have thought was possible.
Give me a call today so we can cover the specifics of your life event and set a plan to make you a homeowner again.
| Conventional | |
| Foreclosure | 7 years from date completed to the disbursement date of the new loan |
| Deed-in-Lieu of ForeclosurePre-Foreclosure or Short Sale | 4 years from either the date of sale or from the completion date to the disbursement date of the new loan |
| Prior Loan Modification | 2 years eligible with Fannie Mae DU approval |
| Chapter 13 Bankruptcy | 2 years from discharge date 4 years from dismissal date |
| Chapter 7 Bankruptcy | 4 years from discharge or dismissal date |
| Multiple Bankruptcy Filings in the Last 7 Years | 5 years from last discharge or dismissal date |
| Jumbo Loan | Follow requirements specific to the proposed loan product |
| VA | |
| Foreclosure Deed-in-Lieu of Foreclosure |
2 years from date completed and title transferred back to lender |
| Pre-Foreclosure or Short Sale | 2 years from credit approval date to date sale closed and title transferred to new owner |
| Prior Loan Modification | Must have a 12-month satisfactory credit history after the event |
| Chapter 13 Bankruptcy | 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage No wait time if discharged or dismissed |
| Chapter 7 Bankruptcy | 2 years from discharge or dismissal date |
| Consumer Credit Counseling | 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage |
| FHA | |
| ForeclosureDeed-in-Lieu of Foreclosure | 3 years from date completed and title transferred back to lender |
| Pre-Foreclosure or Short Sale | 3 years from the date of title transfer to FHA case number assignment |
| Prior Loan Modification | No wait period, but past 12 months’ credit history must have no late payments |
| Chapter 13 Bankruptcy | 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage No wait time if discharged or dismissed |
| Chapter 7 Bankruptcy | 2 years from discharge or dismissal date |
| Consumer Credit Counseling | 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage |
| USDA | |
| ForeclosureDeed-in-Lieu of Foreclosure | 3 years from date completed and title transferred back to lender |
| Pre-Foreclosure or Short Sale | 3 years from credit approval date to date sale closed and title transferred to new owner Less than 3 years may be eligible if all mortgage and installment debt paid on time within the 12 months prior to the sale |
| Prior Loan Modification | 3 years from modification completion date |
| Chapter 13 Bankruptcy | 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage No wait time if discharged or dismissed |
| Chapter 7 Bankruptcy | 3 years from discharge or dismissal date |
| Consumer Credit Counseling | 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage |
Please Note: Shorter wait periods may be available under certain circumstances and depend on the reason for the derogatory credit event. Please refer to your Loan Officer for details.
All Loan Types: If a mortgage loan has gone through a previous modification, or the lender offered a short payoff, it is NOT eligible for a refinance.
All mortgage products are subject to credit and property approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend. MAC01215-1021324909
Sincerely,
Michael Burkes
Sales Manager Producing | NMLS #1427401
15333 N Pima RD 205
Scottsdale, AZ 85260
(602) 908-9484 – Cell Phone
(480) 696-3026 – Office
[email protected]
www.AcademyMortgage.com/michaelburkes
LO State Lic: 0933965
Corp NMLS: 3113 |
Academy Mortgage – 15333 N Pima RD 205, Scottsdale, AZ 85260
For state licensing information, please visit:
http://www.academymortgage.com/StateLicense
