Buying a home again after a short sale, foreclosure or bankruptcy and getting a mortgage is going to depend on ..... USDA Guaranteed Rural Housing Loan
USDA Loan
The waiting period for a USDA loan after a short sale can be as little as 2 months in the right situation. If you
have had a short sale and the following conditions apply, then you could possibly get a USDA loan in as little as
2 months after your short sale:
• Credit Score of 660 or higher
• No late payments for the past 12 months
• If you have recently sold your home and have no late payments, it is possible to qualify immediately
• Obtain a GUS Approval (This is an automated underwriting approval for a USDA Home Loan)
• Investor – 3 years if there are late payments in the credit history
USDA Loan after Foreclosure - As a standard rule, many lenders will tell you that you will need to
wait 3 years after the final date of foreclosure.
• USDA Loan after Deed-in-lieu - The waiting period for a USDA loan after a deed-in-lieu of
foreclosure is generally 3 years.
Guaranteed Rural Housing Loan
Criteria for USDA loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for three
years or more, you are eligible to apply for an USDA mortgage. If you are in a Chapter 13 bankruptcy and have
made all court approved payments on time and as agreed for at least one year you can apply for a USDA loan.
While USDA mortgage guidelines do require that the property be Owner Occupied (OO), they do allow you to
purchase condos, planned unit developments, manufactured homes, and single family residences.
There is no
set maximum loan amount allowed for an USDA Residential Loan. Instead, your debt-to-income ratios will
dictate how much home you can afford (29/41 ratios).
