Mortgage Waiting Periods for Bankruptcy or Short Sale before getting a new Mortgage

Extenuating circumstances could cut the waiting period to two years for Chapter 7 and Short Sale It can be pretty daunting to keep up with the waiting periods that different loan programs require before you can qualify for a new mortgage loan. Fannie Mae and Freddie Mac are the two agencies that issue a typical conventional mortgage loan. Below is a table you can use as a reference. Don’t hesitate to get in touch with us with any questions. Fannie Mae vs Freddie Mac Waiting Periods for Derogatory Credit (Effective October 2014)

		*FANNIE MAE*		*FREDDIE MAC*
Derogatory Event	Waiting Period Requirements		Waiting Period with Extenuating Circumstances	Waiting Period Requirements	Waiting Period with Extenuating Circumstances
Bankruptcy Chapter 7 or 11	4 years		2 years	Defined by Loan Prospector Automated Underwriting System	Defined by Loan Prospector Automated Underwriting System
BankruptcyChapter 13	2 years from discharge date 4 years from dismissal date 2 years from discharge date 2 years from dismissal date			Defined by Loan Prospector Automated Underwriting System	Defined by Loan Prospector Automated Underwriting System
Multiple Bankruptcy Filings	5 years if more than one filing within thepast 7 years		3 years from the most recent discharge or dismissal date	Defined by Loan Prospector Automated Underwriting System	Defined by Loan Prospector Automated Underwriting System
Foreclosure *	7 years		3 years up to 7 years: 90% maximum LTV ratios Purchase, principal residence Limited cash-out refi, all occupancy types	Defined by Loan Prospector Automated Underwriting System	Defined by Loan Prospector Automated Underwriting System
Deed-in-Lieu Preforeclosure Sale (aka Short sale), or Charge-Off of Mortgage Account	4 years – **LTV ratios per the Eligibility Matrix		2 years – **LTV ratios per the Eligibility Matrix	Defined by Loan Prospector Automated Underwriting System – see below for important information for Short Sales	Defined by Loan Prospector Automated Underwriting System – see below for important information for Short Sales

Contact a licensed loan officer for specific parameters for both Fannie Mae and Freddie Mac Waiting Periods after a significant derogatory event.

Mortgage Waiting Periods for Bankruptcy or Short Sale before getting a new Mortgage

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