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“Seasoning” Requirements for BKs, Foreclosures & Short Sales

We still get questions every week about “seasoning” requirements for different adverse credit events, like Bankruptcies, Foreclosures, and Short Sales. So, here they are again, in a nutshell. These are just “general guidelines”, as they vary from lender to lender.

CREDIT SEASONING REQUIREMENTS FOR FINANCING:

I. CONVENTIONAL FINANCING

A. Foreclosure: 5 years from discharge

B. Short Sale/Short Pay-off: Case by case, depending on what the credit report says, and on circumstances. Can be as little as one year, especially because sometimes the credit bureaus are surprisingly lenient in how they report.

C. Bankruptcy: 4 Years from discharge is standard, but can be 2 Years with “extenuating circumstances” (not their fault, re-established credit, one time event)

II. FHA FINANCING

A. Foreclosure: 3 years from discharge

B. Short Sale/Short Pay-off: Same as “conventional” above – case by case, depending on what the credit report says, and on circumstances. Can be as little as one year, especially because sometimes the credit reports are surprisingly lenient.

C. Bankruptcy: 2 years from discharge.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167