New Guidelines for Home Buyers

If you or someone you know have gone through a foreclosure or a short sale in the past, but would like to buy a house in the future, I have some helpful information for you thanks to Bill Harris (Mortgage Lender at American Capital Mortgage in Folsom, CA).

The guidelines for taking out conventional loans have changed recently, but the FHA is the same. 

Here’s a list of the most current guidelines:

For those who have gone through a foreclosure:

Current- 7 Years

(Previously-  5 Years)

Extenuating Circumstances considered after 3 years   (For example: Loss of a wage earner due to death, divorce or disability)

For those who have gone through a short-sale:

2 years with 20% down and reestablished credit

4 years with 10% down and reestablished credit

 7 years with the minimum down payment required and reestablished credit

For those who have filed for bankruptcy:

Chapter 7            4 years           

(Extenuating circumstances after 2 years with reestablished credit)

FHA

Foreclosure/Short-Sale:

3 years           

(Extenuating circumstances may allow less time)

Bankruptcy:

2 years from discharge date.           

(1 year considered with extenuating circumstances)

Filed under: Miscellaneous