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How Soon Can You Purchase Another Home After A Short Sale Or Foreclosure?

Sep 07

filed under: Buying A Home, Foreclosures & Short Sales, Real Estate

Most homeowners that have a prior short sale or a foreclosure often want to know how soon they can purchase another home. You have a good job now, your income is steady and you have been building up your credit. You want to take advantage of the low housing prices, low interest rates and no longer rent. Every time you ask someone you get a different answer or perhaps you figured it would be years before you could ever get a mortgage again. Not so. .  here are the current waiting periods for post foreclosures and short sales.

If you have had a short sale these are the waiting periods for the different types of loans:

Conventional Loan

  • 2 Years with a max of 80% LTV
  • 4 Years with a max of 90% LTV
  • 7 Years LTV for all LTV’s

FHA Loan

  • 3 Years from completion of Short Sale

VA Loan

  • 2 Years from completion of Short Sale

If you have had a foreclosure these are the waiting periods for the different types of loans:

Conventional Loan

  • 7 years from completion

FHA Loan

  • 3 years from completion

VA Loan

  • 2 years from completion

As with any loan, whether you have had a distressed sale in the past or not, lenders will have you go through their normal underwriting¬† process. These timelines that I am providing you are simply for you to know when you can once again make application for a mortgage. A lender’s underwriting process will determine whether you will be approved for a mortgage or not.

Written by Howard Harris