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Re-Establishment of Credit

In today's economy, a lot of families may feel that they will never have the credit to qualify for a mortgage after foreclosure, short sale, bankruptcy, or other adverse credit occurrence. But time heals all wounds. This grid shows the time needed to rebuild your mortgage credit.

Proposed New Loan Type
Foreclosure
Pre-Forclosure/Short Sale Deed-In-Lieu
Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
  • Freddie Mac
  • • 7 years from date of completion
  • • 4 years from date of completion up to maximum 90% LTV primary residence purchase or any rate/term refinance
    • 7 years from date of completion for all loan types
  • • 4 years from date of dismissal or discharge*
  • • 2 years from date of discharge*
    • 4 years from date of dismissal*
  • Fannie Mae
  • • 7 years from date of completion
  • • 4 years from date of completion
  • • 4 years from date of dismissal or discharge*
  • • 2 years from date of discharge*
    • 4 years from date of dismissal*
  • FHA
  • • 3 years from date of completion
    • Waiting period reduced to 1 year if borrower qualifies for the FHA Back to Work program
  • • 3 years from date of completion*
    • FHA financing may be obtained in less than 3 years of short sale under certain circumstances
  • • 2 years from date of dismissal or discharge
  • • 1 year of the payout must elapse and payment performance must be satisfactory; buyer may enter into a mortgage only with permission from court
  • VA
  • • 2 years from date of completion
  • • 2 years from date of completion
    • VA financing may be obtained in less than 2 years of short sale under certain circumstances
  • • 2 years from date of dismissal or discharge
  • • 1 year of the payout must elapse and payment performance must be satisfactory; buyer may enter into a mortgage only with permission from court
  • USDA Rural Housing
  • • 3 years from date of completion
  • • 3 years from date of completion
  • • 3 years from date of dismissal or discharge
  • • 1 year of the payout must elapse and payment performance must be satisfactory; buyer may enter into a mortgage only with permission from court

* Multiple bankruptcy filings within 7 years: 5 years seasoning from the most recent discharge or dismissal date.


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