This is a frequently asked question these days - and the rules are literally changing every day. If you know someone who is faced with a short sale, foreclosure or bankruptcy, please encourage them to seek professional help before making a decision which will impact their financial well-being for years.

Here is a summary of waiting periods for obtaining new financing post bankruptcy, foreclosure or short sale:

Conventional Financing:

Chapter 7 BK: 4 years from discharge date

Chapter 13 BK: 2 years from discharge date (or 4 years from dismissal date)

Foreclosure: 5 years from completion or trustee sale

Deed-In-Lieu/Short Sale: 2 years from completion date with 80% max LTV (loan-to-value) OR 4 years from completion date if 90% LTV

FHA Financing:

Chapter 7 BK: 2 years from discharge date

Chapter 13 BK: 1 year of the payment must elapse and payment performance must be satisfactory. Borrower must have permission from the courts to enter into a new mortgage

Foreclosure or Deed-In-Lieu: 3 years from completion date

Short Sale: No time restriction if borrower was current at the time of short sale and all mortgage and installment payments were made within month due for the previous 12 months, prior to the application date. IMPORTANT: the proceeds from the short sale must serve as payment in full

3 years from completion date if the mortgage was in default or Promissory Note is not showing as paid in full

VA Financing:

Chapter 7 BK: 2 years from discharge date

Chapter 13 BK: 1 year of the payout must elapse and payment performance must be satisfactory. Borrower must have permission from the courts to enter into a new mortgage

Foreclosure: 2 years from completion date

Short Sale: There is not a specific rule for VA loans yet - we can assume the foreclosure rule of 2 years from completion date