How long after a short sale, foreclosure, or bankruptcy do you have to wait before getting approved for a new Conventional mortgage loan??

I am frequently asked how long someone must wait to be able to buy a house and qualify for a mortgage loan after a short sale, foreclosure, deed in lieu of foreclosure, or bankruptcy? Over the next couple weeks I will post the current underwriting guidelines for different types of mortgage loans. Of course underwriting guidelines change from time to time, but these standards are current as of now. A couple weeks ago, I posted about the FHA loan waiting period requirements. Today, I am posting Conventional loan waiting period requirements.

Conventional loans are commonly used in Sacramento. They generally require a minimum of 5-10% downpayment for loans in Sacramento, Placer, El Dorado, and Yolo Counties. Of course there are some special loan programs as well that may require a smaller downpayment. It is not just a loan for first time buyers, but also investors, and move-up buyers...

After Foreclosure, or Deed in Lieu of Foreclosure:
-7 years from date the foreclosure was completed and transferred back to the bank.
-3 years from the date foreclosure was completed and transferred back to the bank may be acceptable if the foreclosure was the result of "extenuating circumstances." You must have at least 10% down and it must be a primary residence under these conditions. Examples of extenuating circumstances for obtaining a new Conventional loan are defined as "non-recurring events that are beyond the borrower's control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.

After Short Sale:
-7 years from the date the short sale closed and transferred to the new owner if you have less than 10% downpayment.
-4 years from the date the short sale closed and transferred to the new owner with 10% downpayment.
-2 years from the date the short sale closed and transferred to the new owner with 20% downpayment.
-2 years from the date the short sale closed and transferred to the new owner with 10% downpayment with acceptable extenuating circumstances.

After Chapter 7 Bankruptcy:
-4 years from the date of discharge with re-established credit paid as agreed.
-2 years from the date of discharge may be acceptable if the bankruptcy was caused by acceptable extenuating circumstances.

After Chapter 13 Bankruptcy:
-2 years from the date of discharge with re-established credit paid as agreed.
-4 years from the date of dismissal date.

Of course, you must speak to a loan officer in order to qualify for a new conventional mortgage...I am happy to point you in the right direction to a great loan officer if you want to explore if you qualify after experiencing a short sale, foreclosure, deed in lieu, or bankruptcy.