Mortgage Navigator • Conventional • Credit & AUS

Bankruptcy, foreclosure & major derogatory credit

A prior major credit event does not mean “no conventional loan.” The event type, completion date and agency rule determine the waiting period.

Build My Mortgage Game PlanConventional Navigator

Fannie DU examples

Fannie's current DU analysis generally treats a non-Chapter 13 bankruptcy inside four years as ineligible. A Chapter 13 discharged within two years or dismissed within four years is generally ineligible. Foreclosure generally carries a seven-year period, with a documented extenuating-circumstance path that can reduce the foreclosure period to three years when all applicable requirements are met.

Short sale / deed-in-lieu / mortgage charge-off

These events have their own agency waiting-period rules and should not automatically be labeled “foreclosure.” Correct classification matters because the waiting period can differ.

Fannie vs. Freddie: this is a high-impact comparison area. We will maintain agency-specific event tables rather than assuming the waiting periods and definitions are identical.
Date matters: use the agency-defined completion, discharge, dismissal, sale or satisfaction date—not simply the date the borrower remembers the problem beginning.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Agency guide and AUS findings control over summaries. Lender and mortgage-insurer overlays may be more restrictive.