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Should I list my house - do you think I'll have any issues being approved?

I'm looking to purchase a home in the $600-620k range in Boca Raton, FL (zip code 33498). Between the sale of my home & work bonus we will be putting down over 20%. Knowing the following factors, can you provide any insight on ability to be approved, PMI, loan types (FHA / Conventional)? 1) Credit score of 630 2) Stable / increasing W2 with salary of $155k and average annual bonus of $30k 3) Shortsale of rental property in March 2012 4) Retirement fund balance of $20k 5) DTI less than 42% and decreasing next month with payoff of lease Any ideas as far as chances to be approved? Would it be safe to list my home?
  • May 11 - Boca Raton
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Answers (12)

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  • June 21
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I think I just answered your question on a separate post, but just in case....

We have a portfolio "2nd Chance" program that has virtually no loan limit so you can get the loan amount you want. The FHA and conventional limit is quite a bit lower than that in Palm Beach county. This would have to be a Jumbo loan.

Our requirements are pretty simple - Have only one Short-Sale or Foreclosure on your record ( no minimum wait after), a 20% down-payment (plus 6 months payments in reserve - can be any liquid funds), a 660 mid FICO (exceptions can be made to 620) and 43% DTI or less. It sounds like you are very close, just your FICO would need a little work.

Take a look at my recent reviews from closing this loan. If you have any questions please contact me. This is an exclusive loan product through my bank. (I'm not a broker selling another banks product. We are a direct lender. )
  • June 11
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Profile picture for CMG Loans
Hello,
  Your issue will be getting a jumbo mortgage after a short sale.  Jumbo lenders do not like foreclosures or short sales within the last 7 years.

  Let me know if I can help

Thanks

Ryan
  • June 11
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Profile picture for user4297644
Well unfortunately I live in FL and my rental property was in a Tier 1 zip which essentially means only new construction is eligible for better coverage terms but thanks for your enlightening comment - I had no idea what insurance was for before you commented...
  • May 17
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Profile picture for wetdawgs
A renter destroying your rental property is not normally called an "economic event".  That's why you carry insurance.
  • May 17
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Profile picture for user4297644
What if the basis of the shortsale was a renter who destroyed the property to the point I couldn't recover? Unfortunately I had dropped a significant amount of cash into the place & didn't have enough time to recoup. The mortgage on my primary has never been late in 4+ years. I'm hoping to walk with $65-75k from the sale of my primary
  • May 17
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From the info you provided, you should qualify for both FHA or conventional financing, however FHA has maximum loan limits, so it might not work for a $600K home.. but understand that we would need to see your complete loan profile to properly advise you as to whether you can be approved or not.. for this reason, i always advise that you contact a LOCAL mortgage broker and apply with them.  Do not use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders…By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario.  Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders..   I'm a Broker here in Scottsdale AZ and I only lend in Arizona.  If you or someone you know is looking for financing options, feel free to contact me or pass along my information.  William J. Acres
  • May 12
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Your down payment, credit, and DTI looks acceptable. The one problem would be the short sale. If you would like a mortgage after a short sale you will need to sit through the required waiting period. The waiting period 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 you 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. When it comes to VA, the wait is two years. 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. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • May 12
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If you Short Sold a home less than three years ago then you will have to wait until you reach the 36 months from short sale going with an FHA loan. If you did not go late on the home and any installment debt 12 months prior to the short sale you can buy right away with FHA.

Answer: Go with Conventional financing; The guideline is if you are 2 years from a short sale you can purchase now, but 20% down is required. My bank goes down to a 620 on conventional financing. If you need further information please reach out to me through Zillow or post on here so others can learn from your experience.

  • May 11
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A lender will be able to give you the best answer after reviewing all necessary documents along with credit reports to see how the short sale was reported. After knowing where you stand on obtaining a mortgage for your new home purchase, you can list your home for sale.
  • May 11
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Great question and infornation provided. I agree with David get totally pre-approved as you do have a few "moving parts" to your scenario. Good news is that on the surface it appears you have what is needed to get pre-approved quickly. Full credit app is necessary to be completely accurate with your options.
  • May 11
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Profile picture for daveskow
you should get pre approved  with a lender/ loan officer  to know for certain ….process is easy / free/ fast  ……this way you will know what sort of rates  and fees to expect and it will be much more accurate and reliable that  postings here 
  • May 11
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