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Waiting Period after Short Sale

I think I need to ask my question a little differently.   I want to get a VA or FHA loan.  I have a 700 FICO, $70,000 in annual income and $125,000 in my jeans.   BUT, I also  had a short sale about 16 months ago...NOT 2 years, but 16 months ago. (An investment property)  I have been told I can't get a new mortgage until that sale has "aged" two years.   Am I screwed?  If you are guessing, you are not helping me.  Anyone got a definitive answer?  Thanks
  • October 04 2013 - US
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Answers (6)

I can close RDL loans w/ mtg lates or not with only 12 months seasoning after short sale. VA loans (without any special circumstances) are still 2 years. So, if the home you want to purchase is in a USDA eligible area and your income is what you say it is, you will be good to go now. If not, your best bet is to wait another 8 months and use your VA entitlement.

Best of Luck!
  • October 10 2013
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Excellent post Brookstone
  • October 09 2013
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Kris is right on the money...you can get a VA loan now assuming the short sale was not a VA loan, but be prepared to document the short sale thoroughly...not all loan officers can get this done, so if one says no call another and see what they have to say...we have several going in my office right now with similar parameters...
  • October 09 2013
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Hi,

     If you are VA eligible, we can do a loan immediately after a short sale. The only catch is, the short sale could NOT have been on a VA ensured mortgage. If it was on a conventional, or FHA etc... you are good to go. I have actually done this recently. If you need some help getting this done, contact me, as I have been a VA specialist at the bank for 2 years. This info should make you happy :) thanks
  • October 09 2013
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There's no guessing in what Brookstone posted. Those are the options. You just didn't get a lender to respond the last time you asked the question, they were all real estate agents.
  • October 05 2013
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There is no definitive answer with what you have provided.

Here are some "maybes."

If you were never late on any payment or any obligations for the 12 months prior to the short sale and through closing then you "may" be eligible immediately.

If your short sale was caused by an "Economic Event" , defined as any occurrence beyond the borrower's control that results in Loss of Employment, Loss of Income, or a combination of both, which causes a reduction in the borrower's Household Income of twenty (20) percent or more for a period of at least six (6) months, you "may" be eligible after 1 year. 

If your short sale is reporting on your credit as a short sale and you have 20% down, you "may" be eligible for conforming financing after 2 years. VA "may" also be available after 2 years.

After 3 years you "may" be eligible for FHA financing.

After 4 years you "may" be eligible for conforming financing with 10% down.

Each program has specific requirements too numerous to post here and you must meet the eligibility for each. Your best bet is to find a good loan officer to look at YOUR situation and tell you exactly what you can qualify for. You haven't given enough information for anyone to give you a "definitive" answer.
  • October 04 2013
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