FHA Derogatory Credit Waiting Periods

What Are FHA Derogatory Credit Waiting Periods?

What Are FHA Derogatory Credit Waiting Periods?

If you want to take out an FHA loan, and you’ve had a derogatory credit event, such as a bankruptcy, foreclosure, pre-foreclosure, deed-in-lieu of foreclosure, short sale, or mortgage charge-off occur within the few years, you may have to wait a bit before becoming eligible for FHA financing. Each type of event has its own waiting period, which is designed to protect both the FHA and the lender from the risk of taking on a borrower who may be likely to default on their loan.