Multiple Agencies to Consider

There are four common entities who purchase loans from or guarantee loans for banks. These include the Federal Housing Authority or FHA, the Veterans Administration or VA, Fannie Mae, and Freddie Mac. Each of these entities have specific waiting period guidelines that are important to know when considering your mortgage loan and whether you’re able to qualify for the best-priced loan or whether you must borrow using a portfolio or private money loan product.

Federal Housing Administration (FHA)

Foreclosure

3 years from foreclosure date

Chapter 13 Bankruptcy

No waiting period required.  Active BK allowed with 12 month payment history on BK plan

Chapter 7 Bankruptcy

2 year from bankruptcy discharge

Short Sale

1 year if no payments were down 180 days late prior to sale; otherwise, 3 years from short sale

Loan Modification

2 year from modification if Notice of Default was filed

Veterans Administration (VA)

Foreclosure

2 years from foreclosure date

Chapter 13 Bankruptcy

No waiting period required

Chapter 7 Bankruptcy

2 year from bankruptcy discharge

Short Sale

No waiting period required, but up to loan underwriter discretion

Loan Modification

No waiting period required, but up to loan underwriter discretion

Freddie Max/Fannie Mae Conventional

Foreclosure

7 years from foreclosure date, 4 in certain circumstances

Chapter 13 Bankruptcy

4 years from bankruptcy dismissal, 2 years from discharge

Chapter 7 Bankruptcy

4 year from bankruptcy discharge

Short Sale

4 year from short sale date if Notice of Default was filed

Loan Modification

2 years on subject mortgage (Fannie Mae only)
No waiting period for non subject property mortgages

Waiting Periods for Portfolio Lenders

Main portfolio lenders follow very similar guidelines as the main four entities listed above, but there are some unique situations where they will approve a loan even if it is outside the requirements listed above.

Waiting Periods for Private Money Loans

There are no minimum waiting period requirements for a private money loan, but the loan to value or LTV will most likely be lower than what you might get from any of the above loan options.