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QUALIFYING FOR FHA AFTER SHORTSALE

MY SHORT SALE WILL BE SEASONED 3 YEARS IN APRIL 2013, MY CREDIT SCORE IS BETWEEN 690 TO 700 I HAVE WATCHED SO MANY NICE PROPERTIES COME AND GO, NO I NEEDS TO STILL WAIT THE 2.5 MORE MONTHS OR CAN I GET PREQUALIIFED FOR FHA LOAN NOW?
  • January 14 2013 - Redlands
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Answers (23)

Arabella,

To clarify, a borrower who had a short sale less than 3 years ago was "Not Late"  on their mortgage has"NO" waiting period. If they were late on their mortgage, they would have these options as of today:

1.) 1 day- Portfolio Loan Products which require larger down payments and the rates are usually double that of traditional loan programs.

2.) 12 months- VA Loan. Although there is not waiting period after a short sale for a VA loan, it would most likely require a manual under which requires a 12 month VOR (verification of rent) therefore the 12 month waiting period would likely be needed.

3.) 12 months- USDA RDL.  The USDA allows a Underwriter to use their discretion if the borrower can document that they had a extenuating circumstance i.e. required job transfer, divorce, loss of wages, layoff, etc. The USDA is much more liberal and understanding than HUD/FHA is now.

4.) 12 months- FHA Back to Work- If the borrower can document they had a loss of income of at least 20% leading up to the BK, Deed in Lieu, Foreclosure, or Short Sale, for a minimum period of 6 months, you should be able to qualify for the BTW.

Hope this clarifies any questions you may have.
  • April 12
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Arabella,

Unfortunately, there is no place on a credit report for that input. Either no lates reported on credit report, or will not qualify. That is why it is rare that a borrower would be eligible.

  • April 11
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To Wayne Lancaster,

Hi there, sir! I appreciate your comment. Would that apply to a situation where the client was advised to make no payments for that last year?

I thank you in advance, Arabella

  • April 11
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The one option is if there were no late payments for 12 months prior to short sale being completed. In that case an FHA loan is possible without a waiting period.  This would be a rare occurrence but could happen.
  • April 11
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I just read an article on how my client can get a home after his short sale's 2 year waiting period, but it was from 2013. My current understanding is that the waiting time is 3 years for and FHA and 4 years for Conventional. Is there anyone who knows of someone who got a loan with less than 2 years' waiting time? I thank you in advance for your helpful comments! --Arabella Gordon, Keller Williams Realty Professional Partners, Phoenix, AZ
  • April 10
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hi there, im in need of some help, I live in NJ and we are curently under banckruptcy. due to my disorder and trying to get disability we are behind and are putting ourselves in a hole. my husband works but its just not covering a banckruptcy payment on top of a mortgage and everything else.
is this true to change our banckruptcy to a liquidation bankruptcy, do a short sale on our home, and we will be able to buy a home in 2-3 years once his name is off the home? i'm very confused I need some help, if someone could help me asap.
my email i[deleted] y name is brittany
  • August 24 2014
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Great news - you have several possible options! Contact me to discuss more detail about you and what you are looking for specifically and I will do a free credit & loan analysis for you!
  • January 28 2014
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Hello,

You can get approved for an FHA loan 3 years after a Short-Sale. There's another option with us that we refer to as our Second Chance loan. It's an exclusive portfolio program that has no wait period. Since FHA loan limits were recently decreased many people needing a high balance or Jumbo loan have run out of options. Our loan will go up to $4 million. Good luck to you!

Craig Bosse
  • January 28 2014
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I will get you qualified.

Nader Girgis
[Spam removed by Zillow moderator due to violation of Good Neighbor Policy].
  • October 29 2013
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If you were on time with your mortgage payments at the time of the short sale I can qualify you for a home loan today!! You can email me at [Removed by Zillow for spam. Please see our Good Neighbor Policy for posting guidelines.]
  • October 14 2013
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May I ask the reason you've elected to go with FHA financing over traditional conventional financing like Fannie Mae? I ask only because Fannie Mae allows you to purchase property 2 years after you have short sold property.
  • August 28 2013
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We have a 2nd Chance Loan we can lend on in California that allows folks who had a foreclosure, short sale or deed in lieu to purchase one day after it is recorded.

Feel free to reach out to me if you would like to talk in more detail.

PaulWatkins
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  • August 27 2013
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You need to consult with a loan officer who has dealt with clients that have sold properties and FHA loans. With your score, you just might qualify.
  • August 11 2013
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April has come and gone my friend.  Email me at spam removed by Zillow moderator due to violation of Good Neighbor Policy]. I will be happy to get you into a new home at a very low rate.  BTW I would of pre-qualified you with an exception that the closing date be exactly 3 years after the pre-forclosure date.  Shoot me an email if your still in the market, I own my own mortgage company and we are licensed in almost every state. 
  • May 07 2013
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I had a client who wanted to buy a home in Arizona, but he had a foreclosure.  After researching the web I found a loan program at sdedw they allow a mortgage after a foreclosure.  There is no waiting period.  Good to see lending options coming back.
  • May 03 2013
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You should be fine for FHA financing but you will most likely not get the FHA approval until May since you have to be 36 months out of the short sale. Some banks have additional guidelines or waiting periods on top of the FHA requirements so working with a broker that has multiple options is your best bet. I specialize in helping people after short sale and have the lenders that can get it done and at today's rates. Be wary of anyone that tells you your rate will be hight due to the short sale. If you want to discuss your situation and start to work on pre qualification in April give me a call.

  • January 17 2013
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We have programs that are 2 years out of a short sale with 20% down. We need to eliminate Mortgage Insurance as they are 4 years out. If you can find a home on www.HomePath.com then it is 3% down with no MI 2 years out also.  We can do 1 day out of short sale on FHA with no late payments on the previous short sale.  If there were late payments then the wait is 3 years.  I hope that helps.
  • January 16 2013
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I would reach out to a few lenders (I can refer a few that do business in our market) to see what they can offer you NOW.  With prices climbing in most so-cal markets...waiting = "wasted monies." 

Feel free to contact me if you aren't already working with a good Realtor that can help you with this :)

Best wishes from So-Cal and good luck
  • January 16 2013
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Be patient and wait. no real estate deal is going any where. Prices are still stagnant and interest rates are going to stay same for the foreseeable future keep saving your money and don't waste it on nonsense. get second and thirsd opinions as to what kind of commission you have to pay or be a part of. Sellers permiate the commission they pay to the buyer.Search,Research and search again. Get well empowered (hotlink deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines) with knowledge.
  • January 15 2013
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With DU approval some lenders will only require 2 yrs from settlement date if applying for a Conventional loan and 1 yr for FHA loans. If you had no late payments on any mortgage or consumer debt within the 12 month period preceding the short sale there is no waiting period at all!
  • January 15 2013
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Assuming you were delinquent prior to the short sale you will have to apply 3 years after the completion date to meet program guideline. If you apply now it will be a decline.
  • January 14 2013
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These are our guidelines:

When a previously owned property was sold for less than what was owed short sale, borrowers are considered eligible for a FHA insured mortgage if, as of the loan application date, all mortgage and installment debt payments were made within the month due for the twelve months preceding the short sale. Borrowers that were in default at the time of the short sale (or pre-foreclosure sale) are not eligible for three years from the date of the sale.

Call me to discuss details. My contact info is on my profile!

Ivan

  • January 14 2013
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If you contact 3 different lenders/mortgage brokers they will probably all tell you something different however I do know that I had a client of mine receive an FHA mortgage 18 months after doing a short sale. I also had a client of mine get a mortgage through a Credit Union within 2 months after their short sale closed.

It really does depend on who you talk to. I recommend you call a small local lender and see what they can do for you. You may even want to contact a lender who does private funding/portfolio loans like Seacoast Mortgage. They state they can give you a loan within 12 months after a short sale.

Feel free to contact me if you have any questions about this. You definitely want to get in this market!

Good Luck!

Tony Galarza
  • January 14 2013
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