Waiting Periods Required for Significant Derogatory Credit Events, Part 1

Conventional (Determined by date of application)
*Must receive an aus approve/eligible including those with extenuation circumstances.
Foreclosure
Home was given back to the bank – No owner participation
1. 7 years from date foreclosure completed and transferred back to bank if they had NO extenuating circumstances.
2. 3 Years from date of foreclosure completed and transferred back to bank with acceptable extenuation circumstances AND 10% down payment. Primary home purchase and rate/term refinance only. Non-owner and second home not allowed.
Short Sale/ Deed in Lieu of Foreclosure
Short Sale: Home sold but sales price didn’t cover amount owed
Deed in Lieu: Home returned in exchange for canceling loan
1. &years from date sale closed and transferred to new owner or transferred back to bank for less than 10% down payment.
2. 4 years from date sale closed and transferred to a new owner or back to the bank with 10% down payment.
3. 2 years from date sale closed and transferred to new owner or transferred back to bank with 20% down payment.
4. 2 years from date sale closed and transferred to new owner or transferred back to bank possible with acceptable extenuating circumstance and 10% down payment.
Bankruptcy Chapter 7
Debts are discharged through BK, client does nor pay and debts owing
1. 4 years from discharge date
2. 2 years from discharge date possible with acceptable extenuating circumstance.
Bankruptcy Chapter 13
Debts are paid back on a monthly scheduled payment plan by client
1. 2 years from discharged date
2. 4 years from dismissal date.