Leah Wise & Dustn Wise
Keller Williams Realty
FHA: 2 years if your foreclosure is due to â€˜extenuating circumstancesâ€™. This would be serious illness or death of wage earner. Divorce or job transfer is not considered â€˜extenuatingâ€™. Otherwise, 3 years from date of transfer back to the lender.
VA: 2 years from date transferred back to lender. 12-23 months if credit is reestablished and foreclosure was due to â€˜extenuating circumstanceâ€™. This would be unemployment, prolonged strike, medical bills not covered by insurance. Divorce is not considered extenuating.
Conventional: 3 years with â€˜extenuating circumstancesâ€™ and 10% down payment. Extenuating circumstance would be any non-recurring event that was beyond the borrowerâ€™s control that resulted in a sudden significant and prolonged reduction in income or catastrophic increase in financial obligations. Otherwise 7 years.
USDA: Less than 3 years with â€˜extenuating circumstanceâ€™ loss of job, delay or reduction in government benefits or other loss of income, increased expenses due to illness, death, etc. Otherwise 3 years.