Derogatory Events & Waiting Period To Obtain A Mortgage.

Here are some General Guidelines for Derogatory Events  and Waiting Periods. Every lender has their own guidelines and overlay. Please always seek the advice of your lender.

Bankruptcy - Chapter 7 or 11- from discharge date to application

• VA Loans - 2 years 
• FHA - 2 years 
• Conventional - 4 years

Bankruptcy - Chapter 13

• VA Loans - discharge prior to application
• FHA - one year out from payment start time - being made on time with written acceptance from bankruptcy court.
• Conventional - 2 years from discharge date or 4 years from dismissal date

Short Sale

• VA -1 year from date of closing until application 
• FHA - if late payments made @ time of short sale - 3 year wait 
• Conventional - 4 years 

Foreclosure - from date of deed transfer to date of application

• VA -2 years 
• FHA - 3 years 
• Conventional - 7 years

Deed in lieu of Foreclosure

• FHA - 3 years 
• Conventional - 4 years 

Minimum Credit Scores

• VA Loan- <$417,000 - 600 credit score, >$417,0000 - 700 credit score
• FHA - 600 minimum credit score, <620 - maximum 43% DTI
• Conventional - 620

Extenuating Circumstances - death of wage earner spouse or serious illness. Job transfer and divorce are not extenuating circumstances. 

This information is accurate as of the time of posting. Please also verify the accuracy of this information at the time you are considering these options as guidelines change.