Quick Guide for Waiting Periods

This guide will provide you with the required wait times information for new loans after concluding short sales, foreclosures, and bankruptcies.

Conventional Loans:

*Chapter 7 BK- 4 year waiting period from the discharge/dismissal date.
*Chapter 13 BK - 2 year waiting period from the discharge date or 4 years from the dismissal date.
*Multiple bankruptcies - If there are multiple bankruptcies within a 7 year period, the waiting period               is 5 years from the most recent discharge/dismissal date.
*Foreclosure - 7 year waiting period from the completion date.
*Deed-In-Lieu /Short sale - Minimum 2 year waiting period.


FHA/VA LOANS:

*Chapter 7 BK - 2 year waiting period from the discharge/dismissal date.
*Chapter 13 BK - 1 year and the court must grant permission to the borrower to enter into a mortgage
  transaction. Document that the borrower's current situation is not likely to recur.
* Foreclosure/Short sale/DIL - 3 year waiting period.
* VA Loans Only - 2 year waiting period for Foreclosures.

Please remember that banks will require higher LTV ratio when making a new loan after completing the waiting time.  For example, Fannie Mae requires 80 % LTV after 2 year wait time.