Finance – Recovering credit guidelines

Bad things have happened during the recent years whether they have been a depression or a recession in your life.  When jobs are lost and the new jobs that have been created are leaving you unemployed, under employed it sometimes makes us feel that there is no hope that things will ever return to normal.  It is not as bad as it seems nor is it necessary for you to continue renting for the rest of your life.

Brad Crowell, with Caliber Funding, provided the following information as to how long it takes to get a mortgage after you have had a traumatic credit experience such as a bankruptcy or a foreclosure in your life:

FHA Guidelines:

  • Foreclosure – 3 years
  • Short Sale – 3 years
  • Bankruptcy, Chapter 7 – 2 years after discharge
  • Bankruptcy, Chapter 13 – 1 year payout period with good pay history

VA Guidelines:

  • Foreclosure – 2 years
  • Short Sale – 2 years
  • Bankruptcy, Chapter 7 – 2 years after discharge
  • Bankruptcy, Chapter 13 – 1 year payout period with good pay history

Conventional:

  • Foreclosure – 7 years
  • Short Sale – 7 years
  • Bankruptcy, Chanpter 7 – 4 years after discharge
  • Bankruptcy, Chapter 13 – 2 years after discharge, 4 years after dismissal

There are sometimes less time frames with acceptable extenuating circumstances.

We also can direct you to some excellent credit repair services that can help remove negative items from your credit reports and raise your credit score.  If you have been frustrated trying to get a medical bill or a late payment corrected on your credit report it is sometimes helpful to call in a pro.

Visit Brad’s website by clicking the link above and check out your mortgage possibilities.  Then call Glen Reid Real Estate Services at 972-596-0371 and we will help you find the house you want to call home.