Home Buying in Memphis>Question Details

dmd2054, Home Buyer in Memphis, TN

How long will I have to wait to qualify for a home loan after a short sale and bankruptcy chapter 7 and chapter 13?

Asked by dmd2054, Memphis, TN Tue Oct 30, 2012

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Each of the events listed have different guidelines regarding how long one must wait before they can qualify for a new loan. The FHA program has the shortest waiting period for each of the events listed.

Ch 13 only requires a wait of 1 year following the filing of the bankruptcy. FHA allows for you to purchase a home, even while you are still making payments on the bankruptcy.

Ch 7 requires a 2 year wait from the date of the discharge, unless you qualify for a shorter wait of 1 year due to extenuating circumstances.

Short Sale. If the mortgage payment had been made on time prior to the short sale, and the sale was made due to job change or move out of the area, then FHA does not require a wait time following a short sale.

0 votes Thank Flag Link Tue Feb 26, 2013
I think Bryan Horn made good answers for you. I know I cannot argue with him. You may want to contact Wells Fargo or Bank of America lenders and ask them. They keep up with that stuff.

Have a blessed day.

Bryan, the low to mid end properties in Memphis are doing very well in my opinion.
0 votes Thank Flag Link Tue Oct 30, 2012
FHA loans require a 3 yr wait after short sales, 2 yr wait after Chap 7 and 1 yr wait after Chap 13.

Conventional loans (Fannie Mae) require 7 yr wait after short sales if you have less than 10% down and only a 2 yr wait if you have 20% down. Chap 13 is a 2 yr wait after discharge. Chap 7 is a 4 yr wait.

Hope this helps!

btw - how are property values doing on the low to mid end in Memphis? thanks, Bryan
0 votes Thank Flag Link Tue Oct 30, 2012
The market is very good for home buyers. There are a lot of really nice homes for sale for less than the appraised value by the tax assessor.
Flag Tue Oct 30, 2012
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