How long do I have to wait to be qualified for a mortgage loan when I have a derogatory account?

Derogatory accounts such as foreclosures, short sales, deed in lieu of and bankruptcy will have a major negative impact on your credit score and usually decreases your credit score about 200-300 points. Depending on how old they are and what you have done to establish good credit since then, you may or may not be qualified for a mortgage loan. To find out about your specific situation; what you need to do and/or how long you have to wait to qualify for a mortgage loan, talk to your favorite lender.

The table below answers the question concerning people who have had a foreclosure, short sale or bankruptcy. The question is when will they be able to qualify for a mortgage loan. The answer is shown below:

Table 1: Waiting Period after Foreclosure, Short Sale, Bankruptcy, and Deed in Lieu Of, etc:

Derogatory Event FHA* CONV** V A***

Bankruptcy - Chapter 7 2Yrs 4Yrs 2 Yrs Bankruptcy - Chapter 1 3 1 Yr 2 or 4Yrs** 1Yr Foreclosure 3Yrs 7Yrs 2 Yrs

Deed In Lieu Of Foreclosure / Short Sale

3Yrs 2 Yrs - 80% LTV 4 Yrs - 90% LTV

2 Yrs

*http://www.fha.com **https://www.efanniemae.com***http://www.veteranloancenter.com

During the Waiting Period you should not have any of the following events:

• No more than 2 installment or revolving debt payments 30 days past due in the last 24 months.

• No installment or revolving debt payments 60 or more days past due since the discharge/completion date of BK (Bankruptcy).

• No housing debt payments past due since discharge/completion of BK (Bankruptcy).

• No new public records BK (Bankruptcy), foreclosure, deeds-in-lieu, unpaid judgments/collections, garnishments, liens since discharge/completion of BK (Bankruptcy).

• Evidence that borrower's credit history does not contain multiple revolving accounts with high balance to limit ratio or high overall utilization of revolving credit.