Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for mrndnow

ND Home loan - 5% down but had short sale 2.5 years ago

My short sale cleared the 2 year mark back in Feb 2013. That is the date it cleared from the closing w/ the courts. I have 5% down and I am looking to buy a home. Where can I go for a loan? It's a purchase at $350k - I have the income to cover this and more as per the mortgage calculators. I have been on the job for over a year and in my profession for over 5 years. No negative credit otherwise. ALWAYS on time with payments.
  • August 07 2013 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (3)

There are owners who have had a foreclosure or short sale years ago who just got approved to buy a new home. Nowadays, many lenders have flexible loan programs that you can take advantage of. Visit an expert in your area to see if you qualify. You can also search online.
  • August 10 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for mrndnow
Wasn't current on the home going into the short sale. So does this mean I need to wait 3 years (Feb. 2014)?
  • August 08 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for GMerino

Borrowers in default on the mortgage at the time of the short sale are ineligible for FHA financing for at least three years from the date of the short sale.  If you were current on the payments on your existing mortgage you would be eligible for an FHA home loan.   If you are looking for a conventional loan financing there are options:

1.  Two years from the date of short sale with a maximum of 80% loan to value so 20% down.
2.  Four years from the date of short sale with a maximum of 90% loan to value to 10% down.
3.  Seven years from the date of short sale with a maximum of 90% or greater so 5% down at this point.

If you have the funds go for it otherwise you would need to wait Feb 2014 to be able to do an FHA home loan.

Best of luck, you are on the right track.

  • August 07 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.