Waiting Period after Short Sale or Foreclosure

One of the most frequently asked questions these days has to do with how long someone has to wait before they can buy a new San Diego North County home after experiencing a foreclosure, short-sale or bankruptcy. It can be vary depending on the type of financing one is trying to obtain.

VA financing is the most lenient. Typically, one has to wait two-years in all cases. Extenuating circumstances could reduce the amount of time before one could buy.

FHA is typically three-years in the case of a foreclosure or short-sale, two-years with a chapter 7 bankruptcy and one-year for a chapter 13 bankruptcy. Personally, I think FHA financing is the best option for most people.

Conventional financing is the most restrictive. Seven-years is usually the waiting period for a foreclosure but in some cases it can be only three-years. Short-sales are from seven down to two-years, depending upon the amount of the  down-payment. A chapter 7 bankruptcy is two to four-years with a chapter 13 being the same.

Information in the above article was provided by Cindy Choice of American Capital Home Loans.  Call to get Cindy’s phone number or email address.

Need more info about buying a San Diego North County home, contact Gary Harmon today.