Foreclosure: A waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower. Extenuating circumstances may be considered for a shorter waiting period if it can be documented, and is measured from the completion date of the foreclosure action.
Short-sale: A pre-foreclosure sale or short sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer.
Deed-in-Lieu: A deed-in-lieu of foreclosure is a transaction in which the deed to the real property is transferred back to the servicer
Waiting Periods:
Foreclosure
- Conventional: 7 years from completion date
- FHA: 3 years from completion date
- VA: 2-3 years depending on circumstances
Short-sale & Deed-in-Lieu
- Conventional 4 years from completion date
- FHA: 2-3 years depending on circumstances
- VA: 2-3 years depending on circumstances
These are the general waiting period guidelines. However, in some cases we can help a home buyer secure a loan as soon as one day after completion or discharge date. Call us to learn more about our “Simple Seasoning” program or download this handy "Simple Seasoning" reference guide.
