How long do I have to wait after a foreclsoure or bankruptcy to get another loan?


  • Chapter 7 or Chapter 11: A four-year waiting period is required, measured from the discharge or dismissal date of the bankruptcy action.
  • Chapter 13: Requires two years seasoning from the discharge date to loan application date or four years from the dismissal date to the loan application date.
  • Multiple Filings: For a borrower with more than one bankruptcy filing within the past seven years, a five-year waiting period is required, measured from the most recent dismissal or discharge date.

Foreclosure: Loans require 84 months seasoning from foreclosure completion to loan application date regardless of reason


Now for Short Sales and Pre-Foreclosures, the rules are a little different:


2 years – 80% maximum LTV
  • 4 years – 90% maximum LTV
  • 7 years – standard LTV

Now for FHA loans, the waiting period is less:

Bankruptcy: 2 years must have elapsed since discharge or dismissal of Ch 7 or Ch 13.


Bankruptcy High Balance Cash-Out Refinance: Not allowed in past 7 years.


Foreclosure, Deed in Lieu or Short Sale: 3 years must have elapsed since completion. The wait period for short sales can be waived if all of the following conditions are met:

·        The loan was current at the time of the short sale

·        The loan was paid on time in the 12 months preceding the short sale

·        All other installment debts were paid on time in the preceding 12 months.


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