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Answers (2)
- Kyle Pursley, "Kyle Pursley"
- Contributions:56
In my experience the only extenuating circumstance I have found to be deemed "acceptable" is the death of a primary wage earner. As long as you remain steadily employed, pay down debt, and continue rebuilding your credit, you should be able to get financing without any problems but, you will more than likely have to wait for the three year waiting period to pass because you had late payments in the last twelve months before short selling your home. As Ofe said, this should be discussed in a private conversation with a mortgage professional. There are a lot of questions that will be raised and personal information that will need to be divulged. This is the best answer I can provide without having all of the information.
As far as loan options go, there are many. Conventional loans on a primary residence require a minimum of 5% down and a FICO of 640 or better. FHA requires a minimum of 3.5% down and a FICO of 640 or better. USDA Rural Development loans offer 100% financing on eligible properties with a FICO of 640 or better. FICO requirements are according to policies according to the company I work for and may vary from other lender's policies. The better your FICO is, and the more you put down, will also help you get a better rate.
You only have to put 20% down on a conventional loan if you want to avoid paying mortage insurance. For FHA loans you must pay for mortgage insurance for 5 years regardless of what your LTV is. I believe USDA is now charging mortgage insurance and it is for the life of the loan (premium is annual but paid monthly) but, I don't originate many of these so I'm not extremely familiar with the new guidelines.
Hope this helps!
Kyle Pursley
Loan Officer
CNN Mortgage
As far as loan options go, there are many. Conventional loans on a primary residence require a minimum of 5% down and a FICO of 640 or better. FHA requires a minimum of 3.5% down and a FICO of 640 or better. USDA Rural Development loans offer 100% financing on eligible properties with a FICO of 640 or better. FICO requirements are according to policies according to the company I work for and may vary from other lender's policies. The better your FICO is, and the more you put down, will also help you get a better rate.
You only have to put 20% down on a conventional loan if you want to avoid paying mortage insurance. For FHA loans you must pay for mortgage insurance for 5 years regardless of what your LTV is. I believe USDA is now charging mortgage insurance and it is for the life of the loan (premium is annual but paid monthly) but, I don't originate many of these so I'm not extremely familiar with the new guidelines.
Hope this helps!
Kyle Pursley
Loan Officer
CNN Mortgage
- Ofe Polack, "Ofe Polack"
- Contributions:1418
Please discuss your situation in the privacy of a lender's office there are too many variables that could impact on the time and source of your next mortgage after a short sale, it's reason, $ owed to lender and payments that were due at time of short sale. Rules that govern short sales are in a state of flux due to the simple volume, so even if you are rejected for a loan today, check again in a few months.
What are the chances of getting in to another FHA loan again?
What are the chances of getting in to another FHA loan again? I have read if you have extenuating circumstances that you might be eligible again in less than two years. I am not sure about any others out there but getting $60 to $70k together for a down is pretty unlikely for us even with another year of savings time. Aren't there any other approaches/avenues we could take without paying outrageous interest rates? Or going for a 20% Down conventional? Or is there Fanny/Freddie programs we could qualify for as well?
To make this easier we did have lates during the short sale. Situation is we had to move to Az. due to a crisis situation. We checked our MOP code and it is reflecting a (9) code for a short sale from our last mortgage lender. Our credit scores at this time are right at 660 and climbing. We are actively paying down all debts. Our Debt to income is pretty low around 28 to 30%. Income is in the mid 6 figure range. Both employed for 12 and 5 plus years. Short sale ended in 06/2010. In a word Stable!
Thanks for all the reply's on this question! We really appreciate it!
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