How Soon Can You Buy Your Next Home After Short Sale and Foreclosure

Many homeowners become a bit concerned about moving forward with a decision of whether or not to short sale or foreclose based on their desire to purchase a home in the future. Below are the time lines given for FHA, VA and Conventional Loans after a short sale and foreclosure. If you have an FHA and you foreclose your wait time is 3 years; while a deed in lieu is 3 years and a short sale is 3 years (if you miss no payments during your short sale there are no seasoning requirements); bankruptcy is 2 years. For Va you must wait 2 years on a foreclosure, deed in lieu, short sale and bankruptcy. Conventional conforming loans (fanni mae and fhlmc) will require 7 years on a foreclosure, 4 years for a deed-in-lieu (may be 7 years  if not primary residence..also based on your loan to value), 3 years for short sale (may be up to 7 years based on loan to value) and bankruptcy is 4 years. Conventional non-conforming loans (Jumbo) requires a wait period of 7 years for foreclosure, 7 years for deed-in-lieu, 7 years for a short sale and 7 years for a bankruptcy. Other credit factors may be considered when qualifying.

There is light at the end of a foreclosure, short sale, BK and deed- in-lieu…


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