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Mortgage one year after short sale?

Hi. We are 11 months out of our SS and coming up on our one year mark. Really looking to buy again. Wife had hours cut by half at work and I took a 7.5 percent payout due to our company going through bankruptcy. Our credit has bounced back in a hurry. Middle score is 760, high is 789, with my wife's just a couple points off from mine. Been speaking with a lender here in Florida who says she thinks we're a solid fit for a USDA mortgage and she felt good about getting us qualified right at our one year mark. Is that something you all see at all? Qualifying so soon after SS? Just don't want to be getting our hopes up if it's totally unrealistic. Thanks in advance.
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February 14 - Saint Augustine
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Answers (7)

Profile picture for jkb1023jb
Thanks for the responses. We got a GUS approval with no problems and have closed on our USDA loan with a 3.875 interest rate. Our case is probably like many others. Readers, don't take what you read or the word of one or two Realtors. Search around. We heard the same thing at least 25 times that we couldn't get anything besides a hard money or portfolio product. Not true!
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May 10
if you have at least 20% down, you can purchase again soon after a short sale without the monthly mortgage insurance and high upfront fees of an FHA loan.  There are lenders available who have no wait period.
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May 10
Hello jkb1023jb

Now that you have passed the one year mark since your short sale, you are no longer limited to a USDA loan

You can now qualify for an FHA .which has a 1 yr wait period , when it is a short sale related to income

Of course there is no wait preiod for a VA if you meet that criterea

Pls contact me if I can be of further help. I am  a Mortgage Loan Originator in Florida

Tom Bawany
HomeBrodge Financial
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May 10
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Past loan was Fannie Mae. Our lender says she has gotten quite a few people a mortgage at 12-13 months after SS. I have read USDA is more forgiving. We're not running the GUS until after our year mark otherwise it'll be an automatic reject. I have a friend who got a USDA mortgage 14 months after SS so I know for a fact that it's not 3 years waiting, especially if you can prove a hardship. Just wanted to get your thoughts on applying so soon after a SS.
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February 15
USDA wants 3 years out on a foreclosure/short sale per our guidelines. USDA is a pretty standard program and I seriously doubt you will be able to get a USDA loan this soon out from your short sale. If your past short sale was on a USDA loan, then no way they will give you a new one. I hate to be the bearer of bad news, but it is not looking very optimistic.
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February 15
I understand not wanting to get your hopes up. That is the shortest timeframe have heard of, personally, but things change everyday in terms of what is or is not acceptable in the mortgage world!

Verify with the lender that they have received GUS (Guaranteed Underwriting System) approval which means that it has been run through the system by an underwriter, not just AUS approved (Automated Underwriting System) by the system used by loan officers.

These are two very different things and GUS is much more accurate in terms of predicting whether you will be approved for the loan or not.

Hope that helps!
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February 15
USDA is more lenient that FNMA/FHA/FHLMC so an approval at the one year mark is not unrealistic. The critical aspect here is to make sure your lender obtains a GUS approval. This is the online automated approval system used by USDA.
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February 15
 
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