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Can I do the Ref for my current home, if I had a short sale on other property 2 yrs ago?

We sell the other property on short sale 2 years and 3 months ago. My current house has more than 30% equity. Is there any why I can do the refinancing?
Thank you for your advice.
  • September 10 2013 - Rocklin
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Answers (8)

Yes. Two years needs to go by from the time of the closing of the short sale, until the application date on the new refinance. 

Often lenders wouldn't accept a short sale unless you go late on your mortgage. If you kept timely payments up until the close of the short sale, then good for you. You're looking good. Often though, it's the mortgage lates that provoke the short sale acceptance that later end up hurting down the road.

Happy to help! 
  • September 11 2013
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Profile picture for Marshall Stewart
Hi Bukowina!  Thought I would chime in and give you some information you might find helpful.   Understandably, you would like to get out of the mortgage insurance if your equity is adequate enough, which would be great of course! But, what if your actual appraisal doesn't come in quite where you thought it would? I would suggest having an alternative game plan that might help you, and understanding the structure a little better, which is reliant on what that appraisal comes in at, right? 

If you go with a conventional loan, or Fannie Mae, then the rule after a short-sale is that you can refinance at 2 years with an 80% loan-to-value (LTV), or at 4 years with a 90% LTV, and at 7 years with 95% LTV. 

What's that appraiser going to give your home for value? Only he knows for sure so, what is your game plan if you're over 80% LTV?  Depending on what your current rate is, and of-course whether or not there is a savings for you, you may still consider an FHA loan as an alternative if the value doesn't come in on the appraisal. Why? Well, IF you did not have any mortgage lates prior to the short-sale, THEN FHA has no waiting period at all, and even if you did, FHA will let you refi at only 3 years and will go to a higher LTV than most conventional loans will. 

It's all going to depend on what that value comes in at for you, but I wanted you to have the information available in helping you to make a game plan, regardless of the appraisal outcome. Just some food for thought with you and whomever you choose as your mortgage broker. 

Happy to help if I can and wish you the best with your refinance. 
Mark Stewart ~ 30 years in the business. 
  • September 11 2013
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The consensus is correct, you are able to refinance using fannie. Please contact a lender to get started, and good luck. 
  • September 11 2013
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I agree with the majority of the posts, you should be just fine.  Find a good local mortgage broker that has experience with this to make sure the process goes as smoothly as possible.

Good luck!

Jerry
  • September 11 2013
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Profile picture for Roseville Loan Guy
  • Bukowina,

    Yes, you should be able to qualify for a conventional loan since you have at least 20% equity and your short sale was over two years ago. As long as you qualify for the loan of course. But the short sale should not be an issue at this point. 
Sincerely,
Greg Cowart

Senior Mortgage Planner - 17 Years Experience

Partners Mortgage,
Roseville, CA
  • September 11 2013
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Yes Fannie Mae is a conventional loan with no mortgage insurance for your scenario, There is no reason to consider FHA if you have 30% equity already.
  • September 11 2013
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I'm not looking for a FHA loan and I don't want to pay Mortgage Premium Insurance. Is there a chance to get a Conventional loan? My credit score is above 760.
  • September 10 2013
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Yes Fannie Mae allows refinance two years after short sale provided the loan is 80% or less of the appraisal value. From the information you posted you should be eligible.
  • September 10 2013
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