How long after a Short Sale, Foreclosure, or Bankruptcy do I have to wait?

Did you get caught up in the housing bubble that burst?  Almost everybody did!  In the Riverside, San Bernardino, Ontario metro areas nearly 50% of all homes sold in 2012 were foreclosure related sales. That was just 2012.  Add to that, all of the other distressed homes sold between 2007 and today, and you get a pretty good idea of the scope of that bubble bursting.

Here's the good news though.  If you've survived the stresses of going through a foreclosure, a short sale, or a bankruptcy, you're probably closer than you think to getting back into the market.  How close?  Let's take a closer look.

Below I outline typical wait times for various loan programs based on which financial circumstance you went through.  

• Short Sale 
• FHA Loan - 0-3 years depending on circumstances.
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years
• USDA Loan - 3 years
• Deed in Lieu of Foreclosure
• FHA Loan - 0-3 years depending on circumstances.
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years
• USDA Loan - 3 years
• Foreclosure
• FHA Loan - 3 years. As little as 1 year if borrower qualifies"Back to Work" program. 
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 7 years
• USDA Loan - 3 years
• Chapter 13 Bankruptcy
• FHA Loan - 1 year if payment period has elapsed. 
• VA Loan - 1 year if payment period has elapsed. 7 years on loans > $417,000
• Conventional Loan - 2 years from discharge date, 4 years from dismissal date
• USDA Loan - 1 year if payment period has elapsed. 
• Chapter 7 Bankruptcy 
• FHA Loan - 2 years from discharge date. 
• VA Loan - 2 years on loans < $417,000; 7 years on loans > $417,000
• Conventional Loan - 4 years from discharge date, 4 years from dismissal date
• USDA Loan - 3 years from discharge date. 

I often advise my clients NOT to wonder.  Don't wonder if you're ready.  Find a lender you trust and find out if you're ready.  If you're not ready, the worst thing you would walk away from this experience with is the truth and a plan.  Sounds like a win/win to me.

Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation.  If you're local , just remember Andy@LoisLauer.Com I'm always here to help.  

My business thrives by word of mouth.  If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.

Until next time.

Andy Blasquez  

Cell ~ 909.539.3292
BRE#01826135
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