When Can I Buy Again?

This question seems to arise frequently in all types of conversations. The time frame when a client can buy a home after a foreclosure, deed-in-lieu, short sale or bankruptcy varies by the agency purchasing or insuring the loan as well as the dollar amount of the loan. Below is a chart to help you know when a client who has experienced one of these events can purchase again.

Federal Housing Administration (FHA)

Bankruptcy – 2 years after date of discharge.
Deed-in-Lieu – 3 years after closing.
Foreclosure – 3 years after closing.
Short Sale – 3 years after closing.

Conventional Conforming (FNMA/FHLMC)

Bankruptcy – 4 years after date of discharge.
Deed-in-Lieu – 4 years after closing (LTV <80%); 5 years after closing (LTV>80%); 7 years after closing for second homes and investment properties regardless of LTV.
Foreclosure – 7 years after closing.
Short Sale – 2 years after closing (LTV <80%); 5 years (LTV 80.1-90%); 7 years (LTV >90%).

Conventional Non-Conforming “Jumbo” (FNMA/FHLMC)

Bankruptcy – 7 years after date of discharge.
Deed-in-Lieu – 7 years after closing.
Foreclosure – 7 years after closing.
Short Sale – 7 years after closing.

Veterans Administration (VA)

Bankruptcy – 2 years after date of discharge.
Deed-in-Lieu – 2 years after closing.
Foreclosure – 2 years after closing.
Short Sale – 2 years after closing.