Derogatory Seasoning Cheat Sheet

by | Jan 30, 2023 | Cheatsheet

There are two waiting periods for each type of derogatory and loan types. The first would be if there are “extenuating Circumstances”. The other is just in general how long to wait.
However, typically, most lender will not allow the extenuating rule to apply. There are some out there (Carrington and SWMC to name a couple).

Loan Type Derog Type  Waiting Period  If Extenuating Circumstances
Conventional  Foreclosure  7 years  3 years
Conventional  Deed In Lieu*** 4 years  2 years
Conventional  Bankruptcy 7/11* 4 years  2 years
Conventional  Bankruptcy 13**  2 years  2 years
FHA  Foreclosure  3 years  1 year
FHA  Deed In Lieu***  3 years  0 years
FHA  Bankruptcy 7/11*  2 years  1 year
FHA  Bankruptcy 13*  1 year  1 year
VA  Foreclosure  2 Years  1 year
VA  Deed In Lieu***  2 Years  1 year
VA  Bankruptcy 7/11*  2 Years  1 year
VA  Bankruptcy 13*  0 Year  0 years

* from the date of discharge
** from the discharge date. 4 years from the dismissal date
*** from the date of transfer to the new owner

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