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Profile picture for ingrach07

i did a shortsale a year and a half ago. Can i apply for a mortgage now?

i heard that a short sale will be removed from your credit history after 2 years but i want to buy a house now.
  • December 03 2013 - Sanford
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Answers (14)

Profile picture for getpreapprovedfast
Depends on if you had late payments leading up to the short sale.
  • December 15 2013
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HI Ingrach07

in many scenario there is no waiting period in short sale. i have provided mortgage loan to client a day after short sale.

please advise what was the reason you had in short sale of the house.


sincerely   


Omar Khamisa
 
  • December 08 2013
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You should take a little time and speak with some lenders in your area. There will surely be someone who can help you get things rolling.


Kevin Richey
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  • December 07 2013
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The borrower may be eligible for an FHA Mortgage after 1 year (12 months) from the event instead of the 2 year waiting period for bankruptcy or 3 year waiting period for a short sale or foreclosure.

I am a direct FHA lender offering this program. We have already successfully closed and helped buyers get in to a home. To prevent any delays we will have your file underwritten and approved before taking the home buyer counseling class to save you time and money. This way you know upfront your file has been approved to move forward with this program. Your file will be underwritten in 72 hours upon receiving the required documentation.

To be eligible for the program, borrowers must be able to prove that a major economic event such as a job loss or severe reduction in income (at least 20 percent for a period of six months) was the main catalyst to the circumstances listed above.

Additional Program Highlights: (1) Adverse credit must be a result a reduction of income, (2) 620 minimum credit score is required of the borrower, (3) Re-establishing credit - Most recent 12 months with perfect payment history, (4) Housing counseling is required a minimum of 30 days prior to all loan applications.
  • December 07 2013
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You most certainly can apply now. But please keep in mind that you will need a hardship and or extenuating circumstances in order to qualify for Conventional, VA or FHA financing this soon after the short sale. The standard waiting periods for Conventional and VA are 24 months, and 36 months with FHA. Prior to that you must prove hardship and or extenuation circumstances. Please let me know if I can be of further assistance.
  • December 07 2013
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FHA's 'back to work' program has shorten the waiting period. You might qualify for a refinance now. Consult with a local lender for more details.
  • December 07 2013
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Hello
Yes you can get an FHA after one year if your short sale was due to extenuating circumstances, such as

loss of income etc

You can also do a VA if that is applicable to you



Thanks

Tom Bawany
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  • December 07 2013
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FHA allows for mortgages after a year following a short sale as long as you follow the requirements of on time payments. Also, you may need to show that you had an economic event that resulted in loss of income for some loan types. Either way, the best thing for you to do is to speak with a lender directly to see if you can get started on financing a new home with your situation. There are lenders like myself that would be glad to speak with you to help you get the loan that you need. Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • December 03 2013
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Thanks Justin,

I was unclear on the rules and often check out Zillow for my own knowledge.   You rock!
  • December 03 2013
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If they were NOT late, there is no waiting period for FHA.

If they were late, then one year wait for "Back to Work".    I made the assumption the OP was late prior to their short sale completion.
  • December 03 2013
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Justin,

Regarding FHA loans after a short sale...  

FHA under special circumstances allows after 1 year (assuming you were late on the loan before short sale)

Did you mean to say that you were NOT late on the loan before the short sale?
  • December 03 2013
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Short sale will not be removed from your credit history after 2 years, it will typically remain on your credit history for 7 years from completion.

There are loan programs that allow for prior short sale.   Fannie Mae allows it 2 years from completion, provided you make a 20% down payment.   FHA under special circumstances allows after 1 year (assuming you were late on the loan before short sale), among other things you must show that you had a 20% reduction in income that led to the short sale.

There are also some "Second Chance" programs available that will require larger down payments and with higher rates. If you are able to put 20% down, your best plan would be to wait until 2 years have passed to allow for best possible financing.
  • December 03 2013
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Profile picture for daveskow
  with an FHA loan - you might be able to if you had no late payments in the 12 months preceding the short sale
  • December 03 2013
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You can always apply.
  • December 03 2013
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