According to FHA
A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from
obtaining an FHA-insured mortgage, if at least two years have elapsed since
the date of the discharge of the bankruptcy. During this time, the borrower
â€¢ have reestablished good credit, or
â€¢ chosen not to incur new credit obligations.
An elapsed period of less than two years, but not less than 12 months may be
acceptable for an FHA-insured mortgage, if the borrower
â€¢ can show that the bankruptcy was caused by extenuating circumstances
beyond his/her control, and
â€¢ has since exhibited a documented ability to manage his/her financial affairs
in a responsible manner.
Note: The lender must document that the borrowerâ€™s current situation
indicates that the events that led to the bankruptcy are not likely to recur.
2011 Conventional Waiting Guidelines (Fannie Mae)
Bankruptcy â€“ You may apply for a Conventional, Fannie Mae loan after your bankruptcy has been discharged for FOUR (4) years.
Foreclosure - You may apply for a Conventional, Fannie Mae loan SEVEN (7) years after the sale date of your foreclosure. Additional qualifying requirements may apply,
Short Sale / Notice of Default â€“ Currently treated the same as a foreclosure with a waiting time of SEVEN (7) years before you can buy again using a Fannie Mae conventional home loan.
Credit must be re-established with a minimum 660 credit score.
Fannie Mae has reduced waiting periods in cases of extenuating circumstances â€“ The death of a primary wage earner seems to be the only one I have been able to identify up to this point.
And as for VA
2011 VA Waiting Guidelines
Bankruptcy - You may apply for a VA guaranteed loan TWO (2) years after a Bankruptcy
Foreclosure - You may apply for a VA guaranteed loan TWO (2) years after a foreclosure
Short Sale - You may apply for a VA guaranteed loan TWO (2) after a short sale, unless it was a VA loan then restrictions apply
Credit must be re-established with a minimum 620 credit score
The attached link is directly to the VA loan information booklet for lenders. On page 32 of the guide, which is page 33 in the Adobe file, you will find the bankruptcy information you are looking for. The reason for the BK is part of the VA consideration as well as your overall payment history. After 2 years, per VA, a lender may disregard the bankruptcy.
However, what VA allows and what a lender may do are only loosely connected. Lenders can, and often do, set higher limits and restrictions. That means you may need to shop for a lender to find one open to your situation.
Good luck and best wishes,
Give me a call, or email me, and I'll be able to explain to you the whole process. I also be able to put you in contact with a good loan officer capable to qualify you for a loan.
American Investor Properties, Inc.
DRE License # 01294012
835 Ohio Ave.,
Long Beach, CA 90804
Please see my blog on this at http://activerain.com/blogsview/2439339/buying-a-home-after- You might also be interested in my blog on buying a home which is at http://activerain.com/blogsview/2442965/buying-a-home-the-st
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