The economy was very tough a few years back and I have met many that went through some very hard times but now have made their way back are financially stable, secure and ready to move on and plant roots again. It was so hard to have to tell these potential home buyers that unfortunately they were not able to purchase a home and had to wait.
But there is now some great news!!
You are no longer held to the 7 year foreclosure wait requirement!
There is of course still waiting requirements but they are more lenient.
- 4- Years from Chapter 7 and Chapter 11 Bankruptcy Discharge
- 2 years from Chapter 13 Bankruptcy Discharge or 4 years from Chapter 13 Bankruptcy Dismissal
VA Short sales- Now 1 year from completion was 2 years
Fannie Mae Short Sales– 4 Years from completion date
FHA– 3 Years from completion
USDA– 3 Years from completion date
As always check with your lender as these are only guidelines and different banks, brokers and mortgage companies will have some of their own programs.
I hope this helps and brings some families closer to their dream of owning a home again.