2016 USDA Guidelines
•Bankruptcy – You may apply for a USDA rural loan THREE (3) years after the discharge of a Chapter 7 or 13 Bankruptcy
•Foreclosure – You may apply for a USDA rural loan THREE (3) years after a Foreclosure
•Short Sale / Deed in Lieu of Foreclosure – If you had big issues the deed in lieu of foreclosure will be viewed as a foreclosure and you would want to wait no less than 3 years if the score is under 640. Over 640 your UW will make the call but typically not less than one year.
(Date of Credit Approval must be after the above waiting period to be eligible for USDA financing after hardship.)
Mark Merry your Edina Mortgage Expert