How Soon Can I Purchase a Home After Financial Hardship?

starting over - blogAccording to WMFE when the recession hit in 2008 Central Florida experienced over 60,000 foreclosures per month. Thankfully today that rate has dropped to around 20,000 per month but Florida still maintains one of the highest foreclosure rates in the country. If you had to go through a short sale, foreclosure, or bankruptcy as a result of financial hardship or the recession, your wait might be over. We came across a list of the length of time lenders want you to wait until you purchase a home again.

VA Loan
Bankruptcy – 2 years with reestablished credit
Foreclosure – 2 years with reestablished credit
Short Sale – 2 years with reestablished credit

FHA Loan
Bankruptcy – 2 years with reestablished credit
Foreclosure – 3 years with reestablished credit
Short Sale – 3 years if delinquent at the time of the short sale, or no waiting period if current on all debt at the time of the short sale
*Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on their principal residence to take advantage of declining market conditions and purchase a similar or superior property, if their short sale was on an FHA mortgage, or if they had a short sale due to job relocation.

Conventional Loan
Chapter 7 Bankruptcy – 4 years, or 2 years if documented extenuating circumstances and with reestablished credit
Chapter 13 Bankruptcy – 2 years from discharge or 4 years from dismissal
Foreclosure – 7 years, or 3 years if documented extenuating circumstances with reduced LTV and with reestablished credit
Short Sale – 4 years, or 2 years if documented extenuating circumstances with reduced LTV and with reestablished credit

USDA/Rural Housing Loan
Bankruptcy – 3 years with reestablished credit
Foreclosure – 3 years with reestablished credit
Short Sale – 3 years with reestablished credit