Denver Real Estate

After the financial crisis which started around 2008, many homeowners found it necessary to give up their homes either by filing bankruptcy or letting the lender foreclosure.  These actions came not only with emotion, but penalties for buying a new home.  Fortunately, the penalties do not last forever!

When it come to financing a new home purchase, each type of financing has different rules.  Here's how they break out:

Chapter 7 Bankruptcy

  • Conventional loan = 4 years discharge date
  • FHA loan = 2 years discharge date
  • VA loan = 2 years from discharge date

Chapter 13 Bankruptcy

  • Conventional loan = 2 years from discharge date
  • FHA loan = 1 year of payment period must elapse (requires approval of the court)
  • VA loan = 1 year of payment period must elapse (requires approval of the court)

Foreclosure

  • Conventional loan = 7 years from the recording date of Public trustee's Deed
  • FHA loan = 3 years from recording date of Public Trustee's Deed
  • VA Loan = 2 years from recording date of Public Trustee's Deed

It is important to note, in addition to the waiting period, the borrower must establish good credit again.  To do that it might be helpful to talk to a lender. They can help you with suggestions on how to do regain good credit.

Everyone needs a place to live.  Renting only makes sense for people who are not settled in an area for at least 2 years or more.  Over 2 years, renting stops making sense.  Owning a home is wise.  Is it time to be a homeowner again?