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Waiting Period to Obtain Financing After a Bankruptcy, Foreclosure or Short-Sale

How Long Does a Buyer Need to Wait After a Bankruptcy, Foreclosure or Short-Sale Before Obtaining Financing?

In this economy, we hear this question often. Below is a summary of the waiting period to obtain financing post Bankruptcy, Foreclosure or Short Sale. 

Fannie Mae

  1. Ch. 7 BK: 4 years from discharge date
  2. Ch. 13 BK: 2 years from discharge date or 4 years from dismissal date, 5 years if more than one filing within the past 7 yearsmultiple filings
  3. Foreclosure: 7 years from completion
  4. Deed-In-Lieu and Short Sale: 4 years from completion date

FHA

  1. Ch. 7 BK: 2 years from discharge date
  2. Ch. 13 BK: 1 year from payout period, permission from court required and payment and performance must be satisfactory 
  3. Foreclosure or Deed-In-Lieu: 3 years from completion date
  4. Short Sale: 3 years from completion date

VA

  1. Ch. 7 BK: 2 years from discharge date
  2. Ch. 13 BK: 1 year from payout period, permission from court and payment and performance must be satisfactory
  3. Foreclosure: 2 years from completion date
  4. Short Sale: No information given, assume 2 years from completion date

USDA - RURAL

  1. Ch. 7: 3 years from discharge date
  2. Ch. 13 BK: 1 year of the payout must elapse and payment performance must be satisfactory - buyer must receive permission from the court to enter into a mortgage
  3. Foreclosure: 3 years from completion date