How long does it take to purchase again?

By May 28, 2014Tips

Let’s be honest, many of our clients or even ourselves have had some hiccups in our credit not too long ago.  Foreclosures, short sales, bankruptcies are all things that were all too real 4-5 years ago. Although, most of these circumstances were of no fault of our own it is now time to move forward and get back to looking at purchasing a home. So how long does it take to buy again? That’s what this first newsletter is all about.  Based on the relationships we have with the banks we work with, we wanted to create this quick reference guide that outlines how long it would take to finance a home again after certain situations happen.  Take a look and please contact us if you have any questions.  Like we mentioned before….  We’re here to help!

Conventional Financing:

Ch. 7  Bankruptcy – 4 years
Ch. 13 Bankruptcy – 2 years from discharge, 4 years from dismissal date
More than 1 filing of BK – 5 years
Foreclosure – 7 years
Short sale – 2 years with 20% down or 4 years with 10% down

FHA Financing:

Ch. 7 or BK – 2 years (3 years if a mortgage was included in the discharge)
Ch. 13 – 1 year into payment plan
Short sale – 2 years (1 year with certain circumstances.  Please call for details)
Foreclosure – 3 years (1 year with certain circumstances.  Please call for details)

VA Financing:

Ch. 7 or 11 BK -2 years (1 year w/ certain circumstances.  call for details)
Short Sale – No seasoning requirement with AUS approval and with no mortgage late payments in the 12 months prior to the short sale. Otherwise 1 year from the last late payment. (If previous short sale was a VA loan entitlement restoration is required.)
Foreclosure – 2 years ( 1 year with certain circumstances)