This actually will make it a bit more difficult. One thing you have to keep in mind is that there are waiting period for applicants who have had a recent short sale. The waiting period for an FHA loan is 3 years after the short sale. For other loans it is a 2-year wait period when you give 20% down, a 4-year wait period for 10% down, and a 7-year wait period with less than 10% down payment.
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Sr. Mortgage Banker
NMLS # 659743
Very unlikely - currently there are some national lenders out there that do offer programs for sub-prime borrowers bc they have investors that're okay lending to higher risk borrowers, however the lowerst I am aware of is 580 Credit Score on FHA with 3.5% down believe it or not. You still have to meet other lender criteria such as employment or income verification and debt to income percentages.... more