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Do I have to wait a full two years after short sale to APPLY or simply CLOSE after two years?

We closed our short sale on 12/2/11 and would like to refinance our FHA mortgage into a conventional 30 year.  There is enough equity to maintain 20% after cashing some out.  The question is can I apply now and CLOSE after 12/2/13 or do I have to wait and APPLY after 12/2/13?
  • October 25 2013 - US
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Answers (5)

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From the Fannie Mae selling guide it reads - The waiting period commences on the completion, discharge or dismissal date (as applicable) of the derogatory event and ends on the disbursement date of the new loan for manually underwritten loans or the credit report date for DU loan casefiles.

This means you can apply BEFORE your waiting period is elapsed, and if the lender/originator knows how to manage the scenario properly you can be in postion to close and fund right after you reach the 2 year mark.
  • October 25 2013
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You can apply before your two years is up, but you cannot close. So it is possible to start the loan process before your actual two years is up but you would also need to time it out right. Also, the 2 year mark is not a guarantee that you will get another loan. Lenders may still deny you but it depends on the type of loan, the lender themselves, your current finances, and your financial record over the past 2 years. Either way, the best thing for you to go is to shop around and speak with a lender. Lenders like myself would be glad to speak with you to help you get the loan that you need. Well I hope this helps, if you have any other questions or need a loan please contact me through the information on my profile page. I hope this helps and good luck! 
  • October 28 2013
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Also, it is very important your lender can manually underwrite a conventional loan for you because it has come to my attention quite a few are not able to.  If you have any questions or need any help getting this done please contact me through this site.

  • October 26 2013
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At this time, the shortest wait period after short sale is 2 years with a Conventional (Fannie Mae) loan as long as you have 20% equity, or 3 years with an FHA loan . Either way, you will not be able to obtain "cash out," but only refinance the current mortgage, which should still benefit you. You cannot actually apply until after the waiting period date has been met. Make sure you know the date that the property was deeded out of your name. I would check the county records to verify.
Paul: refer to the HUD Mortgagee Letter 2013-26 The FHA Back to Work program is available for purchases only.
  • October 25 2013
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Close after two years.

However, was your short sale due to financial reasons or a reduction in income?  If so, you could be eligible for a loan after 12 months.
  • October 25 2013
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