Prospective buyers whoï¿½ve experienced a foreclosure or bankruptcy can â€¨expect the following waiting periods before they can seek loan approval.
|Fannie Mae and Freddie Mac||Dept. of Veterans Affairs||Federal Housing Administration|
|Foreclosure||Seven years, but the lender will make exceptions at three years if extenuating circumstances are met such as job loss or death of a wage earner.||Generally, not less than two years with foreclosures and bankruptcies filed under straight liquidation and discharge provisions. If the foreclosure was on a VA loan, the buyer must have paid the VA for its loss before qualifying for a new VA loan.||Three years, but the FHA may grant an exception if the foreclosure was a result of serious illness or death of a wage earner and the borrower has reestablished good credit.|
|Chapter 7 or 11 Bankruptcy||Four years (two years with extenuating circumstances).||Under a Chapter 7, two years after the discharge with reestablished good credit or no incurred new credit obligations,|
|Chapter 13 Bankruptcy||Two years from discharge date; four years from dismissal date.||After making 12 months of payments to a court-appointed trustee and the trustee or the bankruptcy judge approves new credit.||One year current on required payments to be considered.|