Ingrid B. Quinn

NMLS ID #211652 Arizona, Loan Consultant

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Adverse Financial Event

Have you had an Adverse Finanacial Event, such as bankruptcy, short sale or foreclosure? If so, the following timelines are what you need to follow to be able to return to the home buyer pool.

Chapter 7 Bankruptcy:

Conventional Financing = 4 Years froms discharge date

FHA = 2 Years drom discharge date

VA = 2 Years from discharge date

Chapter 13 Bankruptcy:

Conventional= 4 Years from discharge date

FHA = 12 Months acceptable payment history & court approval

VA = 12 Months acceptable payment history & court approval

Short Sale or Deed-In-Lieu:


– 2 Years 20% Down Payment

– 4 Years 10% Down Payment

– 7 Years for below 10% Down Payment

FHA = 3 Years

VA = 2 Years


Coventional = 7 Years

FHA = 3 Years

VA = 2 Years

It is a good idea that 6 months before you are eligible to buy again, you have your loan officer/ lender check your credit to verify that there are no other complications with your credit history. This should be done to give yourself the proper amount of time to rectify any issue and prepare to buy again. As mentioned in my previous entry, “Credit Score Needed to Buy a Home”, as a prospective home buyer you need to have a minimum credit score of 620, preferably higher. If you have any questions or comments on this subject, please feel free to email me at