Are you curious about the waiting periods for significant derogatory credit events, such as bankruptcy and foreclosures? This list will show you the four categories of waiting periods (Conventional, VA, FHA, and USDA) and their subcategories with the types of derogatory credit events. It’s important to meet with the professionals at Go Clean Credit to work toward clearing these blemishes up through credit repair.
Waiting Periods For Significant Derogatory Credit Events
- Foreclosure
- 7 years from date completed to the disbursement date of the new loan
- Deed-in-Lieu of Foreclosure / Pre-Foreclosure or Short Sale
- 4 years from either the date of sale or from the completion date to the disbursement date of the new loan
- Prior Loan Modification
- 2 years eligible with Fannie Mae DU approval
- Chapter 13 Bankruptcy
- 2 years from discharge date
- 4 years from dismissal date
- Chapter 7 Bankruptcy
- 4 years from discharge or dismissal date
- Multiple Bankruptcy Filings in the Last 7 Years
- 5 years from last discharge or dismissal date
- Jumbo Loan
- Follow requirements specific to the proposed loan product
- Foreclosure / Deed-in-Lieu of Foreclosure
- 2 years from date completed and title transferred back to lender
- Pre-Foreclosure or Short Sale
- 2 years from credit approval date to date sale closed and title transferred to new owner
- Prior Loan Modification
- Must have a 12-month satisfactory credit history after the event
- Chapter 13 Bankruptcy
- 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage
- No wait time if discharged or dismissed
- Chapter 7 Bankruptcy
- 2 years from discharge or dismissal date
- Consumer Credit Counseling
- 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage
- Foreclosure / Deed-in-Lieu of Foreclosure
- 3 years from date completed and title transferred back to lender
- Pre-Foreclosure or Short Sale
- 3 years from the date of title transfer to FHA case number assignment
- Prior Loan Modification
- No wait period, but past 12 months’ credit history must have no late payments
- Chapter 13 Bankruptcy
- 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage
- No wait time if discharged or dismissed
- Chapter 7 Bankruptcy
- 2 years from discharge or dismissal date
- Consumer Credit Counseling
- 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage
- Foreclosure / Deed-in-Lieu of Foreclosure
- 3 years from date completed and title transferred back to lender
- Pre-Foreclosure or Short Sale
- 3 years from credit approval date to date sale closed and title transferred to new owner
- Less than 3 years may be eligible if all mortgage and installment debt paid on time within the 12 months prior to the sale
- Prior Loan Modification
- 3 years from modification completion date
- Chapter 13 Bankruptcy
- 1-year payout has elapsed with all payments made on time and permission obtained from court for new mortgage
- No wait time if discharged or dismissed
- Chapter 7 Bankruptcy
- 3 years from discharge or dismissal date
- Consumer Credit Counseling
- 1-year payout has elapsed, payments made on time, and agency permission for a new mortgage
If you have any questions on the waiting periods for significant derogatory credit events, contact Go Clean Credit.
Please Note on the Waiting Periods For Significant Derogatory credit Events: Shorter wait periods may be available under certain circumstances and depend on the reason for the derogatory credit event.
No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a one size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.
We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.