Ever wonder what loan officers and mortgage managers use when advising borrowers about loans. Below you will find a breakdown of mortgage guidelines. This is helpful when uncertain of what you’re up against when obtaining a new mortgage after having credit issues such as foreclosure, short sale, and bankruptcy.
| Event Type | FHA | VA | Conventional |
|---|---|---|---|
| Bankruptcy Chapter 13 | 1 year of satisfactory payments have occurred and permission from court to enter into a mortgage. |
1 year of satisfactory payments have occurred and permission from court to enter into a mortgage. |
2 years from discharge 4 years from dismissal |
| Bankruptcy Chapter 7 | 2 years | 2 years | 4 years** |
| Bankruptcy Chapter 7 w/Property Surrender | 2 years from discharge** 3 years from foreclosure** |
2 years from discharge** 2 years from foreclosure** |
4 years* |
| Short Sale | 3 years** | 2 years** | 4 years-95% LTV** |
| Deed in Lieu Foreclosure | 3 years** | 2 years** | 4 years-95% LTV** |
| Foreclosure | 3 years** | 2 years** | 7 years |
| Consumer Credit Counseling | 1 year of satisfactory payments and permission from counseling agency to enter into a mortgage. |
1 year of satisfactory payments and permission from counseling agency to enter into a mortgage. |
Case by Case |