How long do I have to wait to buy again?

The question comes up..increasingly so with prices and interest rates so low.  How long after a foreclosure or short sale do I have to wait before buying?  Here’s the answer:

FHA Waiting Guidelines:

·          Bankruptcy – You may apply for a FHA insured loan after your  bankruptcy has been discharged for TWO (2) years with a Chapter 7  Bankruptcy.

·         You may apply for a FHA insured loan after your  bankruptcy has been discharged for ONE (1) year with a Chapter 13  Bankruptcy

·         Foreclosure – You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date.

·         Short Sale / Notice of Default – You may apply for a  FHA insured loan THREE (3) years after the sale date of your  foreclosure. FHA treats a short sale the same as a Foreclosure for now.

·         Credit must be re-established with a 640 minimum credit score

VA Waiting Guidelines:

·         Bankruptcy – You may apply for a VA guaranteed loan TWO (2) years after a Bankruptcy

·         Foreclosure – You may apply for a VA guaranteed loan TWO (2) years after a foreclosure

·         Short Sale – You may apply for a VA guaranteed loan  TWO (2) years after a short sale, unless it was a VA loan then restrictions  apply

·         Credit must be re-established with a minimum 620 credit score

Conventional Waiting Guidelines (Fannie Mae):

·          Bankruptcy – You may apply for a Conventional, Fannie Mae loan  after your bankruptcy has been discharged for FOUR (4) years.

·          Foreclosure – You may apply for a Conventional, Fannie Mae loan  SEVEN (7) years after the sale date of your foreclosure.  Additional  qualifying requirements may apply,

·         Short Sale / Deed in Lieu of Foreclosure – UPDATED  12/16/11  Currently treated the same as a foreclosure with a waiting  time of SEVEN (7) years before you can buy again using a Fannie Mae  conventional home loan.

·         TWO (2) Years up to Maximum 80% Loan to Value | 20% Down Payment

·          FOUR (4) Years up to Maximum 90% Loan to Value | 10% Down  Payment – Subject to Private Mortgage Insurance underwriting guidelines.

·         SEVEN (7) Years above 90% Loan to Value | with less  than 10% Down Payment – Subject to Private Mortgage Insurance  underwriting guidelines.

·         Credit must be re-established with a minimum 660 credit score.

Fannie Mae has reduced waiting periods in cases of extenuating  circumstances – The death of a primary wage earner seems to be the only  one I have been able to identify up to this point.

Preparing to Buy Again after Bankruptcy, Short Sale or Foreclosure:

You should begin looking at your credit at least six (6) months  before you are ready to buy again.  Quite often there are things left  over on your credit report that can delay your ability to qualify.

With  a little head start, you can get your credit in line, qualify for  financing and buy again in the lowest priced real estate market that we  have seen in years!

Call me for help!  There may be  things that yo can do short circuit the process even further