Here's an excerpt from my recent blog post on the topic:Borrower Current at the Time of Short Sale:A borrower is considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage, all mortgage payments on the prior mortgage were made within the month due for the 12-month period preceding the short sale, and installment debt payments for the same time period were also made within the month due.Borrower in Default at the Time of Short Sale:A borrower in default on his/her mortgage at the time of the short sale (or pre-foreclosure sale) is NOT eligible for a new FHA-insured mortgage for 3 years from the date of the pre-foreclosure sale.Exception:A lender may make an exception to this rule for a borrower in default on his/her mortgage at the time of the short sale if the:Default was due to circumstances beyond the borrower's control, such as death of primary wage earner or long-term uninsured illness, andA review of the credit report indicates satisfactory credit prior to the circumstances beyond the borrower's control the caused the default.CONVENTIONALFannie Mae:2-7 year waiting periods:- 2 years – with a minimum down payment of 20%- 4 years – with a minimum down payment of 10%- 7 years – standard down payment requirementsFreddie Mac:4 year waiting period, but exceptions may be made for "extenuating circumstances."VADoes not have specific short sale requirements, so it will depend on the lender. Some may require a two year waiting period, and some may require no waiting period if the borrower was current on mortgage payments and other monthly debts 12 months preceding the short sale.USDAThree year waiting period.
I don't think it will matter since he's not the borrower. He may be able to get away with getting a letter from his bank saying the funds cleared his account instead of submitting his bank statements if the loan officer is worried about it. I once had an older couple gifting down payment funds to their child, and they were uncomfortable giving us their bank statements, so they had their bank provide a stamped, signed letter instead. The loan was FHA and the underwriting accepted it.I hope this helps.
It will depend how long his employment gap was. If he was out of a job for 3 months or longer, lenders generally want 6 months back on the job before you can use his income to qualify for a mortgage loan.
You credit score is high enough to qualify for an FHA mortgage; however, a lender will also check your debt to income ratio to make sure you qualify.
From USDA's website:"The mission of USDA Rural Development's Single Family Housing Guaranteed Loan Program is to assist low to moderate income rural homebuyers achieve their dream of homeownership! Rural Development partners with approved local lenders to extend 100% financing opportunities to eligible rural individuals and families for the purchase of safe and sanitary dwellings. Guaranteed loans have assisted thousands of homeowners to purchase a home with affordable interest rates and loan terms.Applicants must purchase a home within the eligible rural areas, and have a household income that does not exceed the established limits where the home is located."
You'll probably need at least a 620 to be about to get a home loan. Have you had a loan officer pull your credit recently to see if you might be able to boost your score quickly by completing a rapid rescore? You don't have very far to go.Feel free to contact me if you'd like me to take a look.