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