Getting A Mortgage After Short Sale Or Foreclosure

 ‘When Can I Purchase Again After a Short Sale’
A question that is popping up a lot more often now from buyers is “How soon can I purchase again after a Short Sale, Foreclosure or Bankruptcy”. As the housing crash started back in 2007, you will start to find that more and more buyers who suffered a financial hardship in the last 3-5 years, will be in a position to qualify to purchase again soon! Here is a cheat sheet that you can use that will help you answer correctly the next time a buyer asks you how soon can they purchase again after suffering either a Short Sale, Foreclosure or Bankruptcy.
 
When Can I Purchase A Home Again after a short Sale
Buyers essentially have 3 choices these days when it comes to obtaining financing, as more than 9 out of 10 mortgages are either funded by Fannie Mae/Freddie Mac, the FHA or VA! So if a buyer is looking to purchase and needs financing, it is more than likely they will be using one of these 3.

Therefore if you know the repurchase rules that these 3 entities have in regards to when a buyer can repurchase again after suffering a short sale, foreclosure or bankruptcy, you will now be able to let your clients know exactly when they can purchase again! This will also help you focus your time and efforts accordingly too, for example, if you know someone who is 1 month away from being able to repurchase as opposed to 1 year, you will be able to focus more attention on the buyer who can purchase the earliest!

How soon can I purchase again after a Short sale?

Here are the time lines for when a buyer can purchase again after suffering a Short Sale and they are trying to obtain either Conventional, FHA or VA financing.

Here are the time lines for when a buyer can purchase again after suffering a Bankruptcy and they are trying to obtain either Conventional, FHA or VA financing.

Conventional . For a chapter 7 Bankruptcy it is 4 years and 2 years for a chapter 13 bankruptcy for Conventional financing.

FHA. For a chapter 7 Bankruptcy it is 2 years and 1 year for a chapter 13 for FHA financing.

VA. For a chapter 7 Bankruptcy it is 2 years, and 1 year for a chapter 13 bankruptcy for VA financing.

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