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What type of Loan EDITED

I apologize I was pre-coffee when trying to type our situation. And while re-reading it realized it was clear as mud. Let's try that again. Here are the facts... My husband and I had to do a FHA PreForclosure Short Sale Program back in January 2012. It will be two years seasoned as of January 2014. We do not have 20% down to do a Conventional loan after 2 years. We heard you can do Conventional after 2 years with 10% down with extenuating circumstances. I'm not sure what exactly qualifies since we do not have a death in the family or any medical conditions. My Husband's credit score is around 659-661. He is employed for over 7 years now with the same company. Mine is around 720 though I am unemployed. We live in Florida. We have gotten out of $15,000 worth of debt since doing the FHA Preforclosure Sale and pay all our bills 100% on time and early. We have rented a home now for nearly 2 years and paid on time and early. What type of loan can we qualify for at our 2 years seasoned mark in January 2014? We are looking for something with 3%, 5% or 10% down.
  • October 18 2013 - US
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Answers (1)

You can get a Freddie Mac loan after 2 years if you can prove an extenuating circumstance.  Freddie Mac considers an extenuating circumstance to be a nonrecurring or isolated circumstance, or set of circumstances that: 

 Was beyond the Borrower's control, 
 Significantly reduced income and/or  increased expenses, and 
 Rendered the Borrower unable to repay obligations as agreed, resulting in significant adverse or derogatory credit information. 

In addition, if the Borrower's credit history includes significant adverse or derogatory credit within the most recent two years, even if it was caused by extenuating circumstances, the Borrower's credit reputation cannot be considered acceptable. 
  • October 18 2013
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