How Will a Short Sale, Foreclosure or Bankruptcy Affect Your Credit

Below is a breakdown of time frames for different types of loans (these underwriting guidelines are subject to change) and how your credit will be affected.

FHA Loans

Short sale: 3 years or less depending on certain conditions

Foreclosure: 3 years

Chapter 7 Bankruptcy: 2 years from discharge date

Chapter 13 Bankruptcy: 1 year

Conventional Loans

Short sale: 2 years with 20% down & certain additional conditions met

Deed in Lieu of Foreclosure: 2 years with 20% down & certain additional conditions met

Foreclosure: 5 years

Chapter 7 Bankruptcy: 4 years from the discharge date

Chapter 13 Bankruptcy: 2 years

VA Loans

Short Sale: No established time frame but assume at least 12 months

Foreclosure: 2 years

Chapter 7 Bankruptcy: 2 years from the discharge date

Chapter 13 Bankruptcy: 1 year

To find out if you qualify for a new loan to purchase a home in The Estates at the Spectrum, please contact your area expert realtor Leah Hamman (480) 330-76242.

To view avaiable homes in The Estates at the Spectrum, click here: 

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