If I lost a home or had to file bankruptcy, how long do I have to wait to buy again?

Here are the typical waiting period guidelines:

For Conventional Loans:

  • 4 to 7 year waiting period after a foreclosure or bankruptcy
  • 4 year following short sale -90% LTV
  • 2 years following short sale – 80% LTV  

For FHA Loans:

  • 3 year waiting period after a foreclosure or short sale
  • 2 year waiting period after a bankruptcy  

For VA Loans:

  • 2 year waiting period after a foreclosure or short sale, unless it was a VA loan then restrictions apply
  • 2 years after a bankruptcy

To re-establish credit after you've had credit problems in the past, try these three strategies:

1. Open a Secured Card.
With a secured card, you put up a certain amount of cash into an account — perhaps $500 or so — and that becomes your credit limit on the secured card. Then simply make on-time payments for 6 to 12 months. This will definitely help you boost your credit scores because it will generate some positive payment history for you. Before opening a secured credit card make sure the bank that issues the card does report to the credit bureaus.

2. Clean up Negative Information and Mistakes in Your Credit Reports.
Get your TransUnion, Equifax and Experian credit reports. You can get one of each report free each year from http://www.AnnualCreditReport.com. Dispute any mistakes you find. It is a good idea to review your credit report with a Mortgage Professional to see what accounts to focus on to gain the greatest benefit.

3. Pay Your Existing Debts on Time.
Even if you have no regular card, it's likely that you have some existing credit accounts. Whether you have a mortgage, an auto loan, student loans, or other debts that are being reported to the credit bureaus, be sure to pay all those bills on time — every month without fail. The single biggest determinant of your credit score is your payment track record.

San Diego Funding offers you answers to your important Credit Questions.

Credit Reporting Agencies

Repairing Your Credit

Credit and Divorce

The Fair Credit Reporting Act

What is a FICO Score

Correcting Errors in Your Credit Report

Cosigning a Loan

Rob Johnson and San Diego Funding have been assisting homebuyers for over 30 years.

Contact Rob Johnson at 619-260-1660×247 or www.HomeLoansSanDiego.com NMLS # 261482  – CA DRE #00917951