Home > arizona real estate, Uncategorized > AZ Mortgage Question of the Day: How long do I need to be out of an Arizona bankruptcy, short sale or foreclosure to be eligible to mortgage a new home?

AZ Mortgage Question of the Day: How long do I need to be out of an Arizona bankruptcy, short sale or foreclosure to be eligible to mortgage a new home?


AZ mortgage Question of the Day:

How long do I need to be out of an Arizona bankruptcy, short sale or foreclosure to be eligible to mortgage a new home?

Here is a generic guideline – keep in mind that many lenders have additional requirements depending on their own guidelines:

Bankruptcy:

Chapter 7:

FHA – 2 years with re-established credit / 1 year if bankruptcy was from extenuating circumstances and have shown substantial ability to manage new affairs since. A minimum 640 score.

CONVENTIONAL – 4 years and a minimum 680 credit score.

Chapter 13:

FHA – 1 year has elapsed since filing, all payments have been made to the trustee on time and ONLY with trustee prior approval.

CONVENTIONAL – 4 years and a minimum of a 680 score. All payments have been made to the trustee on time and ONLY with trustee prior approval.

Foreclosure:

FHA – * 3 years has elapsed from the finalized date of the foreclosure.

CONVENTIONAL –

* 3 years if borrower can prove extenuating circumstances. Additional occupancy, credit score and down payment requirements.

* 7 years if financial mis-management. Additional occupancy, credit score and down payment requirements.

Short Sale:

FHA * 3 years has elapsed from the finalized date of the short sale.

CONVENTIONAL – * 4 years – Additional occupany, credit score and down payment requirements.

One additional note to consider: Many lenders will NOT follow these guidelines if they had their own prior loan included in the bankruptcy, foreclosure or short sale so keep this in mind when applying. All of this information is in a generic sense and can only be guaranteed with an approval directly from your lender. This is another reason that applying and getting loan approved BEFORE you start home shopping is so important.

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

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