Mortgage loan standards required by FHA, Conventional, and VA underwriting required after a bankruptcy, foreclosure, or short-sale with regard to seasoning after discharge and general credit score standards for FHA, Conventional, and VA lending.
FHA Ch 7 BK……must wait at least 2yr’s from discharge before you can apply for an FHA loan.
FHA CH 13 BK….after you have completed this type of bankruptcy you must have no lates on your credit report in the past 12 months and reestablished new credit
FHA and Conventional after Foreclosure or Short Sale….both FHA and Conventional view a short sale and foreclosure as the same and although a short sale is a better option for the general use of credit, the lending guidelines for a short sale vs a foreclosure are the same with respect to how long each program requires a borrower to wait before they can apply for a new loan…On FHA you must wait a minimum of 3 years before you can apply for a mortgage loan after a Foreclosure or Short Sale
Conventional after Ch 7 BK….your bankruptcy much be 4 years out of discharge or dismissal before you can apply for a new mortgage loan
Conventional after Ch 13 BK… 2yr’s after discharge date or 4yr’s from dismissal date before you can apply for a new mortgage loan
Conventional with a Foreclosure and Short Sale…they are very complicated………with few considerations, Conventional may require 5yr’s from the completion date but in most cases, it will go as far out as 7yr’s depending on FICO or credit score and how much down payment you have to put down
All FHA loans will require a minimum credit score of 640 with the exceptions of the Bond programs. Bond programs still require a minimum credit score of 620.
VA purchase loans still require a minimum credit score of 620.
For specific details to your qualification or ability to apply for a loan, call me, Your Frisco Mortgage Guy For Life.