Foreclosure Recovery
Yes, there is such a thing as foreclosure recovery – Just because disaster struck and you fell into financial distress, it doesn’t mean you carry that burden forever. It happens… But it is recoverable. Your past does not have to dictate your future!
Whether it was a lost job, divorce or something else that took all your money, is irrelevant. Without a doubt, it was a tough time for you. It did serious damage to your credit score and your ability to qualify for a loan. Now that you are recovering, you may be wondering when (or if) home-ownership will become a reality for you.
Good news! Find your situation in the tables below to give yourself an idea of what it will take before you are eligible for a mortgage.
Waiting Period Matrix
| Loan Type | Foreclosure | Short SaleDeed-in-Lieu |
| Fannie Mae | 7 years from completion date | 2 years with max 80% LTV ratio4 years with max 90% LTV ratio7 years with >90% LTVSee eligibility matrix. |
| Freddie Mac(with 680 fico score) | 7 years from completion date | 4 years from completion date for short sale.7 years for Deed-in-Lieu. |
| FHA | 3 years from completion date | 3 years from completion datePer FHA ML 09-52, FHA financing can be obtained in <3 years under certain conditions.* |
| VA | 2 years from completion date | No specific information on this yet. Assume foreclosure rule of 2 years. |
| USDA Rural | 3 years from completion date | 3 years from completion date |
| Jumbo* | Based on specific investor guidelines | Based on specific investor guidelines |
| Loan Type | Chapter 7 Bankruptcy | Chapter 13 Bankruptcy |
| Fannie Mae | 4 years from discharge or dismissal date | 2 years from discharge date4 years from dismissal date |
| Freddie Mac(with 680 fico score) | 4 years from discharge or dismissal date | 2 years from discharge date |
| FHA | 2 years from discharge date | 1 year of the payout must elapse & payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage |
| VA | 2 years from discharge date | 1 year of payout must elapse & payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage |
| USDA Rural | 3 years from discharge date | 3 years from discharge date |
| Jumbo* | Based on specific investor guidelines | Based on specific investor guidelines |
- JUMBO waiting periods vary by lender.
- Waiting time period frames may be less in situations with extenuating circumstances.
- For LTV’s (loan to values) greater than 80%, mortgage insurance guidelines may differ.
- Freddie Mac guidelines updated for 2/1/2011 changes.
This Waiting Period Matrix is courtesy of mortgage consultant, Elsa Wohlford at Premier Mortgage Group, Boulder.
Thanks Elsa!