*MUST RECEIVE AN AUS APPROVE/ELIGIBLE INCLUDING THOSE WITH EXTENUATING CIRCUMSTANCES.

CONVENTIONAL (DETERMINED BY DATE OF APPLICATION)

Derogatory Item Waiting Periods
Foreclosure / Home was given back to the bank- No owner participation

• 7 years from date foreclosure completed and transferred back to bank if they had NO
extenuating circumstances.
• 3 years from date foreclosure completed and transferred back to bank with acceptable
extenuating circumstances1 AND 10% Down Payment. Primary home purchase and
rate/term refinance only. Non-owner and second homes not allowed.

Short Sale / Deed in Lieu of Foreclosure
Short Sale: Home sold but sales price didn’t cover amount owed
Deed in Lieu: Home returned to lender in exchange for canceling loan

• 7 years from date sale closed and transferred to new owner or transferred back to bank
for less than 10% down payment
• 4 years from date sale closed and transferred to new owner or transferred back to bank
with 10% down payment,
• 2 years from date sale closed and transferred to new owner or transferred back to bank
with 20% down payment
• 2 years from date sale closed and transferred to new owner or transferred back to bank
possible with acceptable extenuating circumstance1 and 10% down payment.

Bankruptcy Chapter 7
Debts are discharged through BK, client does not pay any debts owing

• 4 years from discharge date
• 2 years from discharge date possible with acceptable extenuating circumstance1
·

Bankruptcy Chapter 13
Debts are paid back on a monthly scheduled payment plan by client

• 2 years from discharged date
• 4 years from dismissal date

FHA (DETERMINED BY DATE OF CREDIT APPROVAL)

Foreclosure / Deed in Lieu of Foreclosure
Foreclosure:Home was given back to the bank – No owner participation
Deed in Lieu: Home returned to lender in exchange for canceling loan

• 3 years from date foreclosure completed and transferred back to bank
• Less than 2 years, but not less than 12 months from date foreclosure completed and
transferred back to bank may be acceptable if the result of acceptable extenuating
circumstances2

Short Sale
Short Sale: Home sold but sales price didn’t cover amount owed

• 3 years from date sale closed and transferred to new owner.
• No waiting period if borrower had no late payments on any mortgages and consumer
debts within the 12 month period preceding the short sale AND they are not taking
advantage of declining market conditions.

Bankruptcy Chapter 7
Debts are discharged through BK, client does not pay any debts owing

• 2 years from date of discharge with re-established credit paid as agreed or no new credit
obligations incurred.
• Less than 2 years, but not less than 12 months from date of discharge may be
acceptable if the bankruptcy was caused by acceptable extenuating circumstances2 and
borrower has since exhibited a documented ability to manage financial affairs in a
responsible manner.

Bankruptcy Chapter 13
Debts are paid back on a monthly scheduled payment plan by client

• 1 year payout period under bankruptcy has elapsed and the borrower’s payment
performance has been satisfactory and all required payments made on time.

VA (DETERMINED BY DATE OF CREDIT APPROVAL)

Foreclosure / Deed in Lieu of Foreclosure

Foreclosure: Home was given back to the bank – No owner participation
Deed in Lieu: Home returned to lender in exchange for canceling loan

• 2 years from date foreclosure completed and transferred back to bank
• 12-23 months from date foreclosure completed and transferred back to bank if credit reestablished
and paid as agreed and was caused by acceptable extenuating
circumstances3.

Short Sale
Short Sale:Home sold but sales price didn’t cover amount owed

• 2 years from date sale closed and transferred to new owner.
• No waiting period if borrower had no late payments on any mortgages and consumer
debts within the 12 month period preceding the short sale AND they are not taking
advantage of declining market conditions.

Bankruptcy Chapter 7
Debts are discharged through BK, client does not pay any debts owing

• 2 years from date of discharge
• 12-23 months from date of discharge if credit re-established and paid as agreed and was
caused by acceptable extenuating circumstances3.

Bankruptcy Chapter 13
Debts are paid back on a monthly scheduled payment plan by client

• 1year payout period under bankruptcy has elapsed and the borrower’s payment
performance has been satisfactory and all required payments made on time