How do derogatory credit events affect your future home purchases? That answer has been difficult to pinpoint. With the number of short sales, bankruptcies, and foreclosures that have occurred in the past couple of years, the answer seemed to change too. I asked Jason Ames with Waterstone Mortgage Corporation what they are seeing right NOW on the effects of derogatory events. Of course the answer always is, “it depends”. It depends on if in the future you are seeking a conventional loan, FHA loan, VA loan, or USDA loan. Conventional loans can have as little as a 2 year waiting period after a short sale. That’s good news because a year ago, we were being told a little different story. I have attached a document from Jason, that gives you a lot more detail on what the current guidelines are: 

Waiting Periods for Derogatory Credit Events

The most important thing after a derogatory event is to re-build your credit.  Call your lender for ideas that will help you establish good credit again after you experience a significant credit event.  With a little patience, you can be back in your OWN home soon!

Advertisements