Home Loan Timing after BK, Short Sale, Foreclosure

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Foreclosures, short sales and bankruptcies impact your ability to obtain a home loan.  Every different type of Arizona Mortgage (FHA, VA, Conventional, USDA and JUMBO) requires a certain period of time pass before you are eligible for home financing after a BK, foreclosure or short sale.

Your “Eligibility Date” & What it Means

What does the eligibility date actually mean from a timing perspective?  Can a previously sidelined buyer close on a new home loan on the eligibility date?  Or, is that the date they can apply for a AZ home loan?  Lastly, does that date mark the day the reborn home buyer can execute a purchase contract on their next house?

These are great questions.  Answers to each depends on the loan type.  The answer is that a buyer can execute a purchase contract on a new home prior to their eligibility date as long as they do not close on the home prior to their eligibility date.

While a buyer that has eagerly waited for their return to home ownership, it’s key to plan out closing their new home.  This gives their lender time to process their loan application, order/receive a complete appraisal and obtain full underwriting approval.  Beware, each Arizona mortgage company processes loan applications at different speeds.

By Jeremy House

One comment

  1. I had a short sale last year and my Realtor recommend http://www.cfs-mortgage.com/flex for a home loan. I am very happy to be able to purchase again.
    CFS Mortgage assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.

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