Getting a mortgage if you have a foreclosure on your record has its challenges but is not impossible to overcome. While your credit will take a big hit after foreclosure, you may be able to get another mortgage after some time passes. We have composed a chart to detail exactly when you can get a mortgage after bankruptcy, a shortsale, or foreclosure?

Conventional Financing

Derogatory Item	Waiting Periods
Foreclosure	7 years form date 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 circumstances 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	7 years for an 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 payment4 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 payment2 years from date sale closed and transferred to new owner or transferred back to bank possible with acceptable extenuating circumstance/ and 10% down payment.
Bankruptcy Chapter 7	Debts are discharged through BK, client does not pay any debts owing 4 years from discharge date2 years from discharge date possible with acceptable extenuating circumstance
Bankruptcy Chapter 13	Debts are paid back on a monthly scheduled payment plan by client 2 years from discharged date4 years from dismissal date

FHA Financing

Derogatory Item	Waiting Periods
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 bankLess than 3 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 Financing

Derogatory Item	Waiting Periods
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 bank12-23 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 discharge12-23 months from date of discharge if credit re-established and paid as agreed and was caused by acceptable extenuating circumstances.
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

USDA Financing

Derogatory Item	Waiting Periods
Foreclosure Deed in Lieu of Foreclosure Short Sale	Home was given back to the bank — No owner participation Deed in Lieu: Home returned to lender in exchange for canceling loan Short Sale: Home sold but sales price didn’t cover amount owed3 years from the date the foreclosure was completed and transferred back to the bank. Less than 3 years from date the foreclosure was completed and transferred back to the bank may be considered with acceptable extenuating circumstances
Bankruptcy Chapter 7	Debts are discharged through BK, client does not pay any debts owing 3 years from date of discharge.Less than 3 years from date of discharge may be considered with acceptable extenuating circumstances4
Bankruptcy Chapter 13	Debts are paid back on a monthly scheduled payment plan by client 1 year from the date repayment was completed and bankruptcy discharged.Less than 1 year from the date of discharge may be considered with acceptable extenuating circumstances

Examples of acceptable extenuating circumstances (circumstances must be verified and documented)
1. Conventional: nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.
2. FHA: Serious illness or death of a wage earner. Divorce and the inability to sell a property due to a job transfer or relocation to another area does not qualify as an acceptable extenuating circumstance.
3. VA: Unemployment, prolonged strikes, medical bills not covered by insurance, etc, Divorce is not viewed as beyond the control of the borrower and/or spous
4. USDA: loss of job; delay or reduction in government benefits or other loss of income; increased expenses due to illness, death, etc. Circumstances surrounding the adverse information must have been temporary in nature, and beyond the applicant’s control, and have been removed so their reoccurrence is unlikely or the adverse action or delinquency was the result of a refusal to make full payment because of defective goods or services or as a result of some other justifiable dispute relating to the goods or services purchased or contracted for.