When can I buy again??


    Have you gone through a foreclosure or short sale or bankruptcy in the past and want to buy a home again? The rules keep changing, but here are the current loan requirements you need to know.The type of loan you will be obtaining will determine when and how you can buy a new house. Keep in mind, these change often, so let us know if you are reading this post 6 or 8 months after this post was written so we can give you an updated set of rules.


    Foreclosure or Short Sale

    FHA Rules

    Buyers that have experienced an “economic event” where their household income fell by 20% or more for a period of at least 6 consecutive months. If that even has occurred, buyers can qualify for an FHA loan after a foreclosure, short sale or bankruptcy after only 1 year. If there has been no economic event that reduced household income by 20%, there is a 3 year waiting period for a new FHA loan.

    VA Rules

    It is only 2 years before a buyer can repurchase again using VA financing.

    Conventional Rules

    Conventional loans are tougher to get. There is a 7 year waiting period before obtaining a conventional loan.



    For a chapter 7 Bankruptcy it is 4 years . Chapter 13 Bankruptcy is 2 years before repurchasing again using Conventional financing.


    For a chapter 7 Bankruptcy it is 2 years and 1 year for a chapter 13, before a buyer can repurchase again using FHA financing. Or, see above for how a buyer can qualify again after just 1 year if they experienced an economic event.


    For a chapter 7 Bankruptcy it is 2 years, and 1 year for a chapter 13 bankruptcy, before a buyer can repurchase again using VA financing.

    It is surprising to some buyers that they can enter the purchase market again so soon. Please let the Ann Rudd Group know if you would like to talk to a lender about qualifying for a new mortgage.



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    Ann Rudd

    Ann is a 3rd generation real estate professional in her family and has inactive licenses in Maryland and Pennsylvania and is actively licensed in North and South Carolina. Seeing other members of her family help others achieve their home ownership dreams inspired her to become a real estate agent. Helping families is what her job is all about. Whether they are buying a larger home, downsizing, transitioning to a new town or neighborhood, Ann's mission is to make those transitions as smooth as possible.

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