How Soon Can You Buy a Home After a Short Sale or Foreclosure?
 
You or someone you know lost their home. Once recovered from the gut wrenching experience, the question is will you ever be able to buy a home again?
 
The short answer is yes. Below is a cheat sheet with the time frames and details.
 
Conventional Financing
 
For Foreclosures (home was given back to the bank- no owner participation)
 
            7 years from foreclosure completion date and given back to bank if there were no     
   extenuating circumstances.
         
3 years from foreclosure completion date and given back to bank if there was     
    acceptable extenuating circumstances AND a 10% down payment. Only for
    primary owner occupied homes.
 
For Short Sale (Home sold for less than amount owed) or
Deed in Lieu of Foreclosure (Home returned to lender in exchange for canceling the loan)
 
             7 years from sale date closed and transferred to new owner or transferred back to
               bank with less than 10% down payment.
 
             4 years from sale date closed and transferred to new owner or transferred back to
                bank with 10% down payment.
 
             2 years from sale date closed and transferred to new owner or transferred back to
                bank with 20% down payment.
 
             2 years from sale date closed and transferred to new owner or transferred back to
                bank with acceptable extenuating circumstance and 10% down payment.
 
FHA Financing
 
For Foreclosures (home was given back to the bank- no owner participation) or
Deed in Lieu of Foreclosure (Home returned to lender in exchange for canceling the loan)
 
              3 years from foreclosure completion date and given back to bank.
 
              12 months to 2 years from date foreclosure completed and transferred back to                                      
       bank may be acceptable if the result of extenuating factors.
 
  
For Short Sale (Home sold for less than amount owed)
 
             3 years from sale date closed and transferred to new owner.
 
             No waiting period if borrower had no late payments on any mortgages and  
                 consumer debts within the 12 month period prior to the short sale AND they
                 are not taking advantage of declining market conditions.
              
 
Contact me for more info or questions!