Derogatory Item

Conventional Waiting Periods (determined by application date)

Home was given back to the bank – No owner participation · 7 years from date of foreclosure completed and transferred back to bank if they had NO extenuating circumstances · 3 years from date foreclosure completed and transferred back to bank with acceptable extenuating circumstances1 AND 10% Down Payment. Primary home purchase and rate/term refinance only. Non-Owner and second homes not allowed.

FHA Waiting Periods (determined by date of credit approval)

Foreclosure Deed in Lieu of Foreclosure

Home was given back to the bank – No owner participation Deed in Lieu: Home returned to lender in exchange for canceling the loan · 3 years from date foreclosure completed and transferred back to bank · Less than 2 years, but not less than 12 months from date foreclosure completed and transferred back to bank may be acceptable if the result of acceptable extenuating circumstances.

Short Sale

Short Sale: Home sold but sales prices didn’t cover amount owed · 3 years from date sale closed and transferred to new owner. · No waiting period if borrower had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale AND they are not taking advantage of declining market conditions.

Bankruptcy Chapter 7

Debts are discharged through BK, client does not pay any debts owing · 2 years from date of discharge with re-established credit paid as agreed or no new credit obligations incurred · Less than 2 years but not less than 12 months from date of discharge may be acceptable if the bankruptcy was caused by acceptable extenuating circumstances and borrower has since exhibited a documented ability to manage financial affairs in a responsible manner.

Bankruptcy Chapter 13

Debts are paid back on a monthly scheduled payment plan by client · 1 year payout period under bankruptcy has elapsed and the borrower’s payment has been satisfactory and all required payments made on time.

VA Waiting Periods (determined by date of credit approval)

Foreclosure Deed in Lieu of Foreclosure

Home was given back to the bank – No owner participation Deed in Lieu: Home returned to lender in exchange for canceling the loan · 2 years from date of foreclosure completed and transferred back to bank · 12-23 months from date foreclosure completed and transferred back to bank if credit re-established and paid as agreed and was caused by acceptable extenuating circumstances.

Short Sale

Short Sale: Home sold but sales prices didn’t cover amount owed · 2 years from date sale closed and transferred to new owner · No waiting period if borrower had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale AND they are not taking advantage of declining market conditions.

Bankruptcy Chapter 7

Debts are discharged through BK, client does not pay any debts owing · 2 years from date of discharge · 12-23 months from date of discharge if credit re-established and paid as agreed and was caused by acceptable extenuating circumstances.

USDA Waiting Periods (determined by date of credit approval)

Foreclosure Deed in Lieu of Foreclosure Short Sale

Home was given back to the bank – No owner participation Deed in Lieu: Home returned to lender in exchange for canceling the loan Short Sale: Home sold but sales prices didn’t cover amount owed · 3 years from date of foreclosure was completed and transferred back to bank · Less than 3 years from date the foreclosure was completed and transferred back to bank may be considered with acceptable extenuating circumstances.

Debts are discharged through BK, client does not pay any debts owing · 3 years from date of discharge · Less than 3 years from date of discharge may be considered with acceptable extenuating circumstances.

Bankruptcy Chapter 13

Debts are paid back on a monthly scheduled payment plan by client · 1 year from the date repayment was completed ad bankrupty discharged · Less than 1 year from the date of discharge may be considered with acceptable extenuating circumstances.