BANKRUPTCY

FHA

A   two year waiting period is required since the date of discharge of   Bankruptcy.

NOTE:  Must use sale date shown on   Trustee’s Deed for mortgages included in bankruptcy and a 3 yr waiting period   from this date will apply. If FHA Mortgage foreclosure, date FHA paid the   claim is required. Call HUD to verify when that was to move forward.

VA

A two year waiting period is required   from discharge date.

If the bankruptcy was discharged within   the last 1 to 2 years, it is probably not possible to determine that the   applicant or spouse is a satisfactory credit risk unless both of the   following requirements are met:

• the applicant or spouse has obtained   consumer items on credit subsequent to the bankruptcy and has satisfactorily   made the payments over a continued period, and
• the bankruptcy was caused by   circumstances beyond the control of the applicant or spouse such as   unemployment, prolonged strikes, medical bills not covered by insurance, and   so on, and the circumstances are verified.  Divorce is not generally viewed as beyond the   control of the borrower and/or spouse. 

NOTE:  If foreclosure or mortgage   included in Bankruptcy, VA allows same guideline for Bankruptcy, and the   discharged date will be used to determine foreclosure date and borrower   eligibility. VA does not require Trustees deed to determine date of sale.

USDA

If   GUS “Accept” is received, loans do not require lender to obtain additional   credit documentation for derogatory credit. W&V layering risk policy may   apply.

Manual   Underwrites require any applicant with a foreclosure or pre-foreclosure   activity in the previous 36 months, Chapter 7 Bankruptcy discharged in the   previous 36 months, Chapter 13 Bankruptcy that has yet to complete repayment   or has completed repayment within the previous 12 months, and/or late   mortgage payments in the most recent 12 months must submit all supporting   evidence along with the credit waiver regardless of credit score. The lender   must document the compensating factors as well as the rationale that was   applied in the course of making a decision to approve the loan in their   permanent loan file.

NOTE:  If foreclosure or mortgage included   in Bankruptcy, USDA allows same guideline for Bankruptcy, and the discharged   date will be used to determine foreclosure date and borrower eligibility.   USDA does not require Trustees deed to determine date of sale.

FNMA

WAITING PERIOD REQUIREMENTS

EXTENUATING CIRCUMSTANCES

Chapter   13 – A two year waiting period is required from the discharge date; four year   waiting period required from dismissal date.

Chapter   7 or 11 – A four year waiting period is required from the discharge or   dismissal date.

NOTE:   If foreclosure or mortgage included in Bankruptcy, FNMA requires use of   discharge date for manual underwrites and BK filing date when running DU to   determine foreclosure date and borrower eligibility. FNMA does not require   Trustees deed to determine date of sale.

Chapter   13 - Two year waiting period from discharge or dismissal date.

Chapter   7 or 11 – A two year waiting period is required from discharge or dismissal   date.

NOTE:   If foreclosure or mortgage included in Bankruptcy, FNMA requires use of   discharge date for manual underwrites and BK filing date when running DU to   determine foreclosure date and borrower eligibility. FNMA does not require   Trustees deed to determine date of sale.

FORECLOSURE

FHA

A   three year waiting period is required.  (Must use sale date shown on   Trustee’s Deed.)

If   FHA or VA Mortgage foreclosure, date FHA paid the claim is required. Call HUD   or VA to verify when that was to move forward.

VA

USDA

If   GUS “Accept” is received, loans do not require lender to obtain additional   credit documentation for derogatory credit. W&V layering risk policy may   apply.

Manual   Underwrites require any applicant with a foreclosure or pre-foreclosure   activity in the previous 36 months, Chapter 7 Bankruptcy discharged in the   previous 36 months, Chapter 13 Bankruptcy that has yet to complete repayment   or has completed repayment within the previous 12 months, and/or late   mortgage payments in the most recent 12 months must submit all supporting   evidence along with the credit waiver regardless of credit score. The lender   must document the compensating factors as well as the rationale that was   applied in the course of making a decision to approve the loan in their   permanent loan file.

FNMA

WAITING PERIOD REQUIREMENTS

EXTENUATING CIRCUMSTANCES

A   seven year waiting period is required unless extenuating circumstances exist.

A   three year waiting period (up to seven years) is required with additional   restrictions:

• 90% max LTV ratios (the max LTV ratios permitted are   the lesser of the LTV ratios above or the max LTV ratios for the transaction)
• Purchase, principal residence
• Limited cash-out refinance, all occupancy types.

SHORT   SALES/DEED-IN-LIEU/PRE-FORECLOSURE

FHA

A   borrower is not eligible for a new FHA-insured mortgage if he/she pursued a   short sale agreement on his or her principal residence simply to:

• Take advantage of declining market conditions; and
• Purchase a similar or superior property within a   reasonable commuting distance at a reduced price as compared to current   market value.

Loan Modifications - Streamline Refinances are not eligible with any account in   arrears. All accounts must be current. Therefore, loan modifications are not   allowed. However, FHA Cash   Out Refinances are   eligible. A previous loan modification is allowed, but is considered a   delinquent loan if the loan is still outstanding on the credit report. (Need   to obtain copy of original modification and copy of HUD to make sure there   was not a short sale.)

BORROWER CURRENT

AT TIME OF SALE

BORROWER IN DEFAULT

AT TIME OF SALE

• Mortgage payments due on the prior mortgage were made   within the month due for the 12/mo period preceding the short sale; and
• Installment debt payments for the same time period   were also made within the month due.

A   three year waiting period is required from the date of the pre-foreclosure   sale.

NOTE:   Exceptions to this rule for a borrower in default on his/her mortgage at the   time of the short sale:

• Default was due to circumstances beyond the   borrower’s control, such as death of a primary wage earner or long-term   uninsured illness, and
• A review of the credit report indicates a   satisfactory credit prior to the circumstances beyond the borrower’s control   that caused the default.

VA

USDA

If   GUS “Accept” is received, loans do not require lender to obtain additional   credit documentation for derogatory credit. W&V layering risk policy may   apply.

Manual   Underwrites require any applicant with a foreclosure or pre-foreclosure   activity in the previous 36 months, Chapter 7 Bankruptcy discharged in the previous   36 months, Chapter 13 Bankruptcy that has yet to complete repayment or has   completed repayment within the previous 12 months, and/or late mortgage   payments in the most recent 12 months must submit all supporting evidence   along with the credit waiver regardless of credit score. The lender must   document the compensating factors as well as the rationale that was applied   in the course of making a decision to approve the loan in their permanent   loan file.

FNMA/FHLMC

WAITING PERIOD

ADDITIONAL REQUIREMENTS

Two Years

80% max LTV ratios*

Four Years

90% max LTV ratios*

Seven Years

LTV ratios per transaction

*The   max LTV ratios permitted are the lesser of the LTV ratios above or the max   LTV ratios for the transaction.

NOTE:   A two-year waiting period is permitted if extenuating circumstances can be   documented, with max LTV ratios of the lesser of 90% or the max LTV ratios   for the transaction.

DU/LP   approval is required.