Waiting time periods after Short Sale, Foreclosure and Bankruptcy

Timeline For Mortgages After Short Sale, Foreclosure & Bankruptcy

We are often asked what the timeline (or waiting period) is for homebuyers who want to borrow money but have recently been through a short sale, foreclosure, or even a bankruptcy.  There are always exceptions to the rules with extenuating circumstances.

Below are the waiting periods for Fannie, Freddie, FHA, VA, USDA and Jumbo mortgages.

Waiting Period After A Short Sale

  • Fannie Mae (Conventional) Loans – 2 years if borrowing 80% LTV, 4 years if borrowing 90% LTV, 7 years if borrowing above 90% LTV
  • Fredie Mac Loans – 4 years from completion date
  • FHA Loans – 3 years from completion date
  • VA Loans – Assume foreclosure rule of 2 years
  • USDA/Rural Development Loans – 3 years from completion date
  • Jumbo Loans – Based upon specific investor guidelines (for loans above the conforming limits)

Waiting Period After A Deed-In-Lieu-Of-Foreclosure

  • Fannie Mae (Conventional) Loans – 2 years if borrowing 80% LTV, 4 years if borrowing 90% LTV, 7 years LTV per eligibility matrix
  • Fredie Mac Loans – 4 years from completion date
  • FHA Loans – 3 years from completion date
  • VA Loans – Assume foreclosure rule of 2 years
  • USDA/Rural Development Loans – 3 years from completion date
  • Jumbo Loans – Based upon specific investor guidelines (for loans above the conforming limits)

Waiting Period After A Foreclosure

  • Fannie Mae (Conventional) Loans – 7 years from completion date
  • Fredie Mac Loans – 4-7 years up to 90% LTV, 7 years 90% LTV and above
  • FHA Loans – 3 years from completion date
  • VA Loans – 2 years from completion date
  • USDA/Rural Development Loans – 3 years from completion date
  • Jumbo Loans – Based upon specific investor guidelines (for loans above the conforming limits)

Please don't hesitate to call with any questions.

Ben Coulter  |  NMLS#383046
Ben@BenCoulterMortgages.com