Required Credit Re-Establishment Periods for Mortgages after derogatory credit:
Short Sales (Deed in Lieu of Foreclosure)
| Loan Type | Waiting Period |
|---|---|
| Conventional (Fannie Mae, Freddie Mac) | 4 years |
| FHA | 3 Yrs from Sale Exception: No Wait – If No Lates Prior to Short Sale & no lates on installment debts for prior 12 months |
| VA | 2 years from sale if borrower not delinquent at time of transfer 3 years from sale if borrower was delinquent at time of transfer |
| USDA | 3 years from sale |
Foreclosures
| Loan Type | Waiting Period |
|---|---|
| Conventional (Fannie Mae, Freddie Mac) | 7 years from recorded date (if discharged thru BK – 4 Yrs.) |
| FHA | 3 Yrs from Trustee’s Deed (if no sales price or date, use recording date) |
| VA | 3 years from recorded date 7 years for High Balance Loans |
| USDA | 3 years from recorded date |
Loan Modifications
| Loan Type | Waiting Period |
|---|---|
| Conventional (Fannie Mae, Freddie Mac) | 2 years if no principal reduction and have met the modification terms |
| FHA | No wait with DU/LP approval if no principal reduction and have met the modification terms |
| VA | No wait with DU/LP approval and 12 month as agreed payment history |
| USDA | 3 years from sale |
Chapter 7 Bankruptcy
| Loan Type | Waiting Period |
|---|---|
| Conventional (Fannie Mae, Freddie Mac) | 4 years from discharge date 5 years if more than BK one filing within the past 7 years |
| FHA | 2 years from discharge date |
| VA | 2 years from discharge date 7 years for High Balance loans |
| USDA | 2 years from discharge date |
Chapter 13 Bankruptcy
| Loan Type | Waiting Period |
|---|---|
| Conventional (Fannie Mae, Freddie Mac) | 2 years from discharge date 4 years from dismissal date 5 years if more than one BK filing within the past 7 years |
| FHA | 2 years from discharge date 2 years from dismissal date Exception: 1 year w/ BK Court & Payment History Approval |
| VA | 2 years from discharge date 2 years from dismissal date Exception: 1 year w/ BK Court & Payment History Approval |
| USDA | 3 years from discharge date 3 years from dismissal date |
