Experiencing a damaging credit event like a foreclosure, short sale or bankruptcy doesn’t mean you will never be eligible for a mortgage again. As you prepare to buy your next home, take a look at this useful chart to see typical waiting periods before you can be approved for a mortgage. If you experienced extenuating circumstances*, your wait time may be shorter than you think.
*Extenuating circumstances are temporary events that are beyond a borrower’s control, such as the loss of a job, medical bills or death of a wage earner. Divorce and the the inability to sell the house after a job relocation do not qualify. These events must be documented, and they are subject to review by the underwriting team.
