How soon can you qualify for a USDA loan after foreclosure or short sale?

Welcome back everyone sean stevens here again with metroplex mortgage services and another usda loan pro video quick tip a waiting period determines how quickly you can qualify for a mortgage after foreclosure however that period depends on the mortgage type you are applying for today we will focus on how quickly you can qualify for a usda loan after foreclosure

But before we get started don’t forget to download our free loan comparison chart with the link below this one page chart breaks down the waiting periods for each loan type updated usda guidelines state the following regarding foreclosures a foreclosure is the legal process by which a lender takes control of a property evicts the homeowner if necessary and

Sells the home to attempt to satisfy the mortgage debt the current homeowner is no longer able or willing to make agreed upon mortgage payments as stipulated in the mortgage contract a foreclosure discharged or a repossession reported 36 months prior to the date of loan application is not adverse credit so can you qualify for a usda loan with a foreclosure less

Than three years ago as discussed above if a foreclosure occurs three years prior to the application date it will be deemed to have met the usda foreclosure waiting period however one exception to the three year waiting period is when you obtain and accept response through the usda guaranteed underwriting system also known as gus when you are able to obtain this

Automated acceptance no credit exception is required for waiting periods less than three years additionally if your file receives a guest response of refer refer with caution or for those manually underwritten loan files a credit exception is required when the applicant has a foreclosure reporting within the three years prior to the application as a reminder

Gus is usda’s automated underwriting system and is available to assist lenders in the usda loan approval process as a usda approved lender we utilize and have access to the gus underwriting system which allows us the ability to review the findings up front and help determine your eligibility do usda guidelines consider timeshare losses as foreclosures usda

Considers the loss of a timeshare adverse credit of a long-term obligation and not a foreclosure this loss will be reflected in the credit score lenders must review the applicant’s credit history to determine if they are an acceptable credit risk no credit exception is required for the loss of a timeshare thus while the short answer is no remember that any

Negative credit which results from a timeshare loss will be considered during the underwriting review remember not all lenders have experience with processing and closing usda loans as an approved usda lender we are known for our program expertise and have specific systems in place to process usda loans from pre-qualification to closing just call or email if

You have any usda qualifying questions want to discuss a new scenario or just like to take advantage of our free second opinion service which is great for those existing transactions i want everyone to make it a great day and look forward to seeing you right here for the next tip of the week

Transcribed from video
How soon can you qualify for a USDA loan after foreclosure or short sale? By Metroplex Mortgage Services