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Short Sale due to relocation. What is the waiting period?

I short sold a home in UT in 06/2012 so I could take a job in California. I have went to 2 different lenders and was told 2 different things. The first lender told me I would qualify for a conventional loan with 20% down with a "relocation" exemption.
The second lender told me I would have to wait for 2 years after the close of my short sale. I have a 700 mid score with no late payments on my credit other that the 120 late on my short sale before it closed. I don't want to go into escrow until I know for sure I will qualify.
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January 28 - Madera
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Answers (9)

We can lend one day after Short-Sale with 20% down with our exclusive portfolio program. I work directly for the bank that offers this, I'm not a broker selling another banks product. The difference is that my team and I work with these loans on a daily basis. Based on what you have said above you should have no problem qualifying. I'm closing 2 of these loans next week. Let me know how I can help.

Good luck!
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February 05
If you are using Conventional Financing at 80% LTV, a 2 year waiting period is required.  If you are using Conventional Financing at 90%, a 4 year waiting period is required. If you are using Conventional Financing at >90%, the waiting period is 7 years.  FHA requires a 3 year waiting period.  You will want to contact you Lender to see if they have exceptions to these rules. 
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February 05
I have a lender who does not require a waiting period whether you've had late payments or not. 
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January 30
Hola Hector,

Depending on the circumstances of your relo, there may be no waiting period required. I just closed one where the borrower's company closed in FL and relo'd him to CA. He had no late payments, but his credit report was reporting "settled for less than full balance". If you were late on your mortgage at the time of close, the shortest waiting period is 12 months. I have dozens of past clients I have closed under these circumstances. If you need assistance, please contact me by clicking on my profile. Don't forget to leave your phone number.

Best of Luck!
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January 30
You will have to sit through a waiting period that can last from 1-7 years depending on your finances before you can purchase another loan. If you would like an FHA loan, the waiting period is 3 years, but there is an exception. If your husband experienced an economic event that caused a loss of income (such as unemployment) which then resulted in your short sale, then you will have only have to wait 1 year. If you plan to go conventional the waiting period is 2 years with 20% down, 4 years with 10% down, and 7 years with 10% or less down. Lastly, you will also have to have rebuilt your credit after the short sale. Either way, the best thing for you to do is to speak with a lender such as myself to see if you can get started on financing a new home sooner due to that relocation. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
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January 29
Hi Hector

based on your scenario you can apply for fha loan after 2 years of short sale if the Short Sale property was NOD Filed than you have to wait 3 years. 

Good Luck 

Omar Khamisa
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January 28
There are some portfolio options that will allow you to purchase without a waiting period.  These will typically require a 30-35% down payment.

Other than that, you would need to wait the 2 year waiting period to be eligible for the new mortgage.

Feel free to contact me directly through my profile if you have any further questions.

Best,

Bryan
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January 28
There are some exceptions to the 2 year rule for short sales on various products, but the 120 day late prior to the short sale would exclude you from these exceptions. 

Based on the info provided, it is my opinion that you'll need to wait the two years. 

Best of luck!
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January 28
The second lender is correct, Fannie Mae guideline is 20% down available 2 years from short sale completion.

There are some portfolio lenders that will potentially allow you to qualify sooner, however you would be looking at adjustable rate loans with higher interest rates.   Since you have only 5 more months to wait, best to just sit tight for now until you reach the 2 year mark and then work on getting your pre-approval at that point.
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January 28
 
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