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I have had many of my clients pose the question, “When can I purchase another home since I have had a foreclosure and or a bankruptcy”

The answer is somewhere between 2 years and 7 years.  It depends on the circumstances of the foreclosure or bankruptcy and the type of loan you will be applying for.

Event	Conventional Extenuating Circumstance	Conventional Financial Mismanagement	FHA General Rule
Foreclosure	36 months - minimum of 10% down payment	84 months - minimum of 10% down payment	36 months
Pre-foreclosure or Short Sale	24-83 months -10% down payment 84 months – standard guidelines	24-47 months - 20% down 48-83 months –10% down 84 months – standard guidelines	36 months No waiting period if it was a short sale and there were no mortgage late payments.  Some restrictions may apply.
Chapter 7 Bankruptcy	48 months from the discharge date	48 months from the discharge date	36 months from the discharge date. 24 months extenuating circumstance
Chapter 13 Bankruptcy	24 months from the discharge date	48 months from the discharge date	12 months minimum since the payout period
Consumer Credit Counseling	treated the same as a Chapter 13	treated the same as a Chapter 13	treated the same as a Chapter 13
Multiple Bankruptcies	36 months from the discharge date	60 months from the discharge date	36 months from the discharge date

The foreclosure wait period starts once the property is transferred from your name and foreclosure is completed, not the foreclosure notice date or auction date.

The bankruptcy wait period starts from the discharge date.

Credit must be re-established after a bankruptcy or foreclosure. No late payments or derogatory credit after the bankruptcy or foreclosure.

Housing related reference for 24 months usually required.

Credit report must not indicate excessive obligations that could adversely affect the borrower’s ability to repay the mortgage obligation.

Work history will need to be stable.

An explanation will be required for the reason(s) for the bankruptcy and/or foreclosure.

This is a general reference; please contact me to discuss the specifics of your situation in order to determine your eligibility.