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Answers (14)
- Spirit Messingham, "TucsonSpirit"
- Contributions:662
You are free to try, but I dont like your chances. Please consider speaking with a local lender. I would probably avoid the lender whom you short saled your previous house with...
- George Raymondo, "The Loanranger"
- Contributions:144
This question is being asked more and more frequently every day. I have written about this very subject countless times but have found this diagram bests explains the answer to your question. This is taken directly from the HUD 4155 Chapter 4.C.2.1 Mortgage Credit Analysis Insurance Handbook.
In short, if you kept your mortgage(s) current the last 12 months prior to your escrow closing, you will be eligible for FHA financing providing that you didn't sell your home merely to take advantage of the declining market conditions and in order to purchase a similar or superior property. If not, your short sale is viewed in the same manner as a foreclosure or a deed in lieu of, therefore requiring you to wait 3 years from the date of sale (or Trustee's Sale in the case of a foreclosure) in order to be eligible for FHA financing.
If you are a Veteran wanting to VA, your wait is only 2 years provided your previous loan wasn't a VA Loan. Other than those government programs I just mentioned, there is only Private Money or Hard Money Lending that would allow you to purchase less than the time frames listed above. These types of loans require a minimum of 30-40% down depending on the overall picture and generally have high rates and fees. I hope this explains it sufficiently.
Good Luck!
In short, if you kept your mortgage(s) current the last 12 months prior to your escrow closing, you will be eligible for FHA financing providing that you didn't sell your home merely to take advantage of the declining market conditions and in order to purchase a similar or superior property. If not, your short sale is viewed in the same manner as a foreclosure or a deed in lieu of, therefore requiring you to wait 3 years from the date of sale (or Trustee's Sale in the case of a foreclosure) in order to be eligible for FHA financing.
If you are a Veteran wanting to VA, your wait is only 2 years provided your previous loan wasn't a VA Loan. Other than those government programs I just mentioned, there is only Private Money or Hard Money Lending that would allow you to purchase less than the time frames listed above. These types of loans require a minimum of 30-40% down depending on the overall picture and generally have high rates and fees. I hope this explains it sufficiently.
Good Luck!
- kann2
- Contributions:2
Hi, we did a short sale on our home 6 months back and now, we want to buy another home. We have $ 300,000 as down payment.Does having a huge down payment help in getting a mortgage?
- kann2
- Contributions:2
Hi, What if you had a huge down payment like $ 300,000, will that help when trying to get a mortgage 1 year after you short saled your home?
- Chris Eldridge, "Chris Eldridge Group"
- Contributions:104
AZ_buyer,
FHA adopted the following guidelines in 2010 stating borrowers are
FHA adopted the following guidelines in 2010 stating borrowers are
considered eligible for a new FHA-insured mortgage if:
1) they were current on their previous mortgage and other debts at the time of the short sale and
2) if the proceeds from the short sale serve as payment in full.
They also stated that borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement to take advantage of declining market conditions, or to purchase another property at a reduced price.
Additionally, borrowers who execute a short sale while in default on their mortgage are not eligible for a FHA-insured mortgage for three years from the date of the sale. Lenders, however, can make exceptions if the default was due to circumstances beyond the borrower's control, such as the death of the primary wage earner.
You should contact a mortgage lender to see what your options are.
The Chris Eldridge Group
Tierra Antigua Realty
[Phone number deleted by moderator]
1) they were current on their previous mortgage and other debts at the time of the short sale and
2) if the proceeds from the short sale serve as payment in full.
They also stated that borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement to take advantage of declining market conditions, or to purchase another property at a reduced price.
Additionally, borrowers who execute a short sale while in default on their mortgage are not eligible for a FHA-insured mortgage for three years from the date of the sale. Lenders, however, can make exceptions if the default was due to circumstances beyond the borrower's control, such as the death of the primary wage earner.
You should contact a mortgage lender to see what your options are.
The Chris Eldridge Group
Tierra Antigua Realty
[Phone number deleted by moderator]
- Justin Coleman, "UtahLoanProfessional"
- Contributions:72
Unfortunately to obtain traditional financing you will have to wait for 3 years from the date of sale.
- Roswell Moore, C.M.P.S., "Mortgage.Coach"
- Contributions:104
It shows that you paid less than than the full balance, plus, you had at least one 30 day late, the last one in 06-2010. Looks like you will have to wait. There are other ways to get a house now, instead of waiting another year.
Feel free to contact me directly if you have any other questions I can help you with.
Feel free to contact me directly if you have any other questions I can help you with.
- az_buyer
- Contributions:4
Can I get a home loan with this in my credit report:
- Roswell Moore, C.M.P.S., "Mortgage.Coach"
- Contributions:104
You can order a free credit report to find out how the bank(s) reported your short sale.
- az_buyer
- Contributions:4
How can I find out how the short sale was reported?
Thanks,
Thanks,
- Thomas Osterman, "Thomas Osterman"
- Contributions:155
The other agents are correct, but a big part of the answer is based on how your former lender reported the short sale to the credit agencies. If it was reported as "Paid as Agreed" you should be in good shape now. If it was reported otherwise you will probably have to wait a couple of years.
- Aliyah Martinez Top Agent, "Aliyah35"
- Contributions:114
Unfortunately, you will have to wait min. 2-3yrs before obtaining a new mortgage. Although, your credit score is decent. An underwriter for the bank will more than likely not approve you for a new loan at this time.
- Roswell Moore, C.M.P.S., "Mortgage.Coach"
- Contributions:104
Hi az_buyer,
You will have to wait a minimum of 2 years before you can qualify for a mortgage. If there were compensating factors as to why you had to short sale your home & you were not late with any of your payments, you may be able to qualify now.
You will have to wait a minimum of 2 years before you can qualify for a mortgage. If there were compensating factors as to why you had to short sale your home & you were not late with any of your payments, you may be able to qualify now.
Please feel free to contact me if you have any other questions you may have.
All the best,
Ros
Roswell Moore, CMPS
Certified Mortgage Planner
- Jeff Masich, "Arizona Homes Land"
- Contributions:508
Dear AZ:
It may be tough, but yes go ahead and contact your lender.
If you need assistance in finding a lender feel free to ask.
Jeff Masich
Arizona Homes and Land
HomeSmart
It may be tough, but yes go ahead and contact your lender.
If you need assistance in finding a lender feel free to ask.
Jeff Masich
Arizona Homes and Land
HomeSmart
buy a house after a short sale
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