How long you must wait to purchase or refinance a property after a short sale or foreclosure?

Call half a dozen lenders and you will get a variety of answers regarding how long you must wait to purchase or refinance a property after a derogatory event like a short sale or foreclosure shows up on your credit report. A good starting point to figuring out the answer is to look at the Fannie Mae (FNMA) and FHA guidelines on the subject. 

  • November 05 2013 - Santa Clara
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Answers (16)

You may qualify conventional ONE DAY after a short sale, foreclosure or deed in lieu with a minimum 660 fico score and 20% down. You may qualify FHA ONE YEAR from a BK, short sale, foreclosure or deed in lieu from a minimum 580 fico score and from 3.5% down or as low as .5% half percent down payment program.

Traditionally FHA requires 3 years from a short sale, foreclosure or deed in lieu and conventional is 7 years from a short sale, foreclosure or deed in lieu and VA is only 2 years. Credit scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary. It only takes a few dozen questions to qualify and go over options...
  • June 23
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There are lenders out there that can offer financing 1 day after a foreclosure or short sale has occurred.  Beware - the terms are significantly different then your typical FHA or Conventional Style Loan.  Typically higher rates and adjustable interest rates.

For traditional financing:

A conventional loan <$417k - you'll need to be 2 years outside of a short sale and 7 years outside of a Foreclosure.

A FHA Loan - General Guidelines require 3 years from a Foreclosure.  The FHA Has a back to work program that would allow a potential buyer to qualify 1 year outside of a Foreclosure or Shortsale presuming you can documents a 20% decrease in income that caused the Short Sale/Foreclosure as well as take a government sponsered homeownership class.

Hope this helps. 

I'm licensed in 49 States so feel free to contact me directly with any questions.

Best of Luck -

Randy
  • June 05
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You can buy a home two years after short sale with a conventional loan and 20% down. If you wait three years you can buy with an FHA loan and only put 3.5% down. You can refinance with a conventional loan two years after as long as you have 20% equity.

Jared Leichliter
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  • June 05
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You don't need to wait any longer if you have only had one Short-Sale or Foreclosure in the past 5 years. You'll also need a 20% down payment. We can finance you the day after Short-Sale or Foreclosure. The loan amount is virtually unlimited which is great for California since there is a large portion of the loans which are Jumbo.
  • March 19
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Less is more so no reason to wait for 2 to 7 years. You can buy now and I can share with you how.
Call and we can discuss your goals.
 
  • March 19
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Hello,

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Craig Bosse
  • January 09
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A foreclosure can impact your ability to obtain another home loan relatively quickly after the event. The exact length of time will vary, though. And it'll depend on factors such as the type of home loan as well as the lender extending it.
  • November 17 2013
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  • November 15 2013
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  • November 06 2013
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Waiting period after short sales, foreclosures, and bankruptcies are usually around 2 years but can be more depending on your current finances, financial record, your lender/loan type, and circumstance of the loan. If you're finances are strong enough, it can be possible to a loan after 2 years. I recommend you speak with a lender like myself. Us lenders would be more than happy to speak with you to help you get the refinancing that you need. So if you have any other questions or need a loan, please contact me through the information on my profile page. I hope this helps and good luck!
  • November 05 2013
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FHA has a program called "back to work" which only requires a 1 year waiting period.  Contact a local lender of yours and ask them specifically for this program.  Otherwise you will have to wait at least 2-3 years depending on the situation.

  • November 05 2013
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Michael,

This question has been answered here many times and if consumers want to ask again they may. What you are doing amounts to nothing more than SPAM however.

This area is for homeowners/consumers to get answers to questions, not for you to market to or fish for them.

Stick around for a while and give consumers quality and accurate information, it is a great place for that. I've been doing it for years, its great and you can help a lot of people if you do!

Sincerely,
Greg
  • November 05 2013
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The answer to this question is currently in a state of flux.  During and immediately after the financial meltdown, it became almost impossible to buy a home after a foreclosure.  Fannie Mae and Freddie Mac, as well as FHA, USDA and VA all tightened their guild lines.  Some lenders decided that they wouldn't do a loan for somebody with a foreclosure for as long as 7 years!

Since then, lenders have started to mellow out a bit if your foreclosure was the result of extenuating circumstances, you have had perfect credit since and you can afford to put more down. 

FHA will consider you after a 3 year waiting period AFTER THE SALE OF THE PROPERTY!  So, if you gave your home back and the lender sat on it for a long time (I've seen a lender NOT actually foreclose for as long as three years!  In that case, though it might not be fair, the clock doesn't start ticking until the property is actually transferred out of your name and into the lenders).

FHA has also just rolled out it's "Bank to Work" program where they waiting period is as little as 1 year if "extenuating circumstances can be documented.  Unfortunately, not many lenders are participating in this program yet, so you might have to make some phone calls!

Hope this helps!

Bob Mitchell
NMLS # 1046286
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  • November 05 2013
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Typically 3 years but check with your local lender.
  • November 05 2013
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Hi MIchael,

You are right on getting a half a dozen different answers.  The real truth to the question is that you don't have to wait at all.  It just depends on how bad you want to buy a home.  If you want a 30 year fixed, Fannie Mae loan, there will be a waiting period.  However, there are many portfolio programs and other creative ways to finance a home that can be done at any point in time after or even during a foreclosure.  It is all a question of how motivated the buyer is.
  • November 05 2013
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Hi Mike--

You must wait a period of 2 years for FHA and VA home loans and a period of 7 years for conventional financing.

Hope this helps!
  • November 05 2013
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