I just stole this from a newsletter I receive.

Waiting Periods for BK/FC/SSale

A common question from borrowers and homeowners these days is how long they will need to wait to buy again if a negative item appears on their credit report. Different loan programs have different disqualification periods for Bankruptcy/Foreclosure/Short Sale. Once the automatic disqualification period has elapsed, the normal income/asset/credit requirements typically apply. It is also important to remember that if a mortgage account is included in a Bankruptcy, then foreclosure waiting periods apply with all loan programs. Here is breakdown by loan program:

Conventional Loans

• Bankruptcy = 4 years
• Foreclosure = 5 years
• Short Sale = 2 years

VA Loans

• Bankruptcy = 2 years
• Foreclosure = 2 years
• Short Sale = industry standard is 2 years

FHA Loans

• Bankruptcy = 2 years
• Foreclosure = 3 years
• Short Sale = industry standard is 3 years unless no mortgage lates in the past 12 months and buying in a different geographic location (out of state job transfer for example).

Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
3131 E Camelback #120
Phoenix, AZ 85016
Phone: 602.793.7204
E-Fax: 602.889.2258