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USDA mortgage approval one year after short sale

Not as much of a question as a follow-up for people who were in our boat, and this site has been a blessing! 

Short sold March 22, 2013. 

 Told by every Realtor out there that a mortgage inside of three years after a short sale (with late payments) was a pipe dream. Kept banging away at it and found a lender in Central Florida who could make it happen, and then met an awesome lender on this board, Dana Goodman, from Banc of California, who took our file and ran with it. 

Went USDA route, file cleared underwriting, got GUS approval yesterday and shooting for a May 3 close. It can be done, fellow short salers! Keep your heads up when you run into a brick wall and keep checking around. There are some great people on this board.  
  • April 03 - Saint Augustine
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Answers (4)

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Thanks for the responses. Closing on Friday! If you can qualify USDA is the way to go. And please don't listen to lenders who use the canned responses of 2, 3, 4 years before you can buy again. I was definitely discouraged hearing that all the time. Be persistent and use the people on this forum's knowledge. The lender we're using said their minimum credit score for USDA is 660 so I guess it varies by lender.
  • April 30
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Make sure you update this question once you get your USDA Loan Commitment. I have been trying to get the word out for years, but I seem to be one the very few who can do these. Also, the answer of needing a 680 is incorrect, the GUS goes down to 640 and we can actually do a manual underwrite on this product down to 580.
  • April 07
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Yes, this is correct but not everyone falls into your boat.

TO BE ELIGIBILE FOR A LOAN AFTER A SHORT SALE (BANKRUPTCY) AND QUALIFY YOU MUST HAVE A USDA LOAN. IN ADDITION, YOUR MEDIAN FICO SCORE HAS TO BE 680+. THERE ARE ALWAYS OPTIONS OUT THERE.

MY ADVICE, ALTHOUGH SOMETIMES NOT BENEFICIAL TO MY WALLET, IS ALWAYS! ALWAYS! ALWAYS! SHOP AROUND YOUR HOME LOAN, MAKE SURE YOU'RE GETTING THE BEST DEAL AND THE BEST LOAN OFFICER FOR YOU!!!
  • April 04
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I do them all the time and have for years. Contrary to what 99% of Loan Officers say out there, the USDA has not ruling on purchasing after a short sale, thus if we get a GUS Approval then we fund them and the USDA will issue Loan Commitments. Google my name then USDA and you find many articles I have written in the past with dozens of past client remarks. Hopefully this will give you the warm and fuzzies.

Best of Luck!
  • April 04
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