Seasoning is an underwriting time frame that must pass before you can be eligible for mortgage financing. When you experience a financial hardship, typically your credit scores decline. It takes years to navigate around certain events and to bring your credit scores back up. If you are looking to buy or refinance a property, lenders will look at what they call seasoning. Seasoning times, or the waiting period before applying for a new mortgage, can vary and begins typically from the end of the event of hardship.
Please refer to the chart below for specific examples of seasoning requirements, and please know there is light at the end of the tunnel because many new programs are coming into market to serve borrowers who are now rising from their past hardships. If you have experienced foreclosure, bankruptcy, or short selling your home, pay close attention to the Fresh Start program which allows you to start again with no seasoning.
Carl Guzman, NMLS# 65291, CPA, is the founder and president of Greenback Capital Mortgage Corp. He is a residential financing expert and a deal maker with over 25 years’ experience. Carl and his team will help you get the best mortgage financing for your situation and his advice will save you thousands! www.greenbackcapital.com [email protected].
|
Program |
Foreclosure |
Bankruptcy |
Short Sale |
|
Conventional |
7 years from completion |
Ch. 7 4 years from discharge/dismissal |
4 years from completion |
|
FHA |
3 years from completion date, FHA pays the initial claim & clears CAIVRS |
Ch. 7 2 years from discharge AUS approval |
No seasoning if borrower made all mortgage and installment payments in the month due for 12 months prior to the short sale, and made all mortgage and installment payments within the month due for the 1-month period preceding the loan application for the new mortgage, 3 years from completion date if in default at time of sale. |
|
VA |
2 years from foreclosure date |
Ch. 7 2 years from discharge |
2 years from completion |
|
USDA |
3 years from completion |
Ch. 7 3 years from discharge |
No seasoning if borrower made all mortgage and installment payments in the month due for 12 months prior to the short sale, and made all mortgage and installment payments within the month due for the 12-month period preceding the loan application for a new mortgage. |
|
Jumbo |
7 years from completion |
7 years from discharge/dismissal |
7 years from completion |
|
Fresh Start |
No seasoning requirement |
No seasoning requirement |
No seasoning requirement |
|
Homeowners Access |
2 years from completion |
2 years from discharge/dismissal |
2 years from completion |
|
Jumbo Alternative |
7 years from completion |
7 years from discharge/dismissal |
7 years from completion |
|
Investor |
2 years from completion |
2 years from discharge/dismissal |
2 years from completion |
|
Foreign National |
7 years from completion |
7 years from discharge/dismissal |
7 years from completion |
By Carl Guzman
