If you are pursuing conforming financing (Fannie Mae/Freddie Mac), you will need to wait 2 years from the short sale (no matter the reason, or if you were late on the mortgage or not). At 2 years, if it was due to extenuating circumstances, then you are required to put at least 10% down, otherwise a 20% down payment is required. At 4 years a 10% down payment is permitted no matter what the reason for the short sale (extenuating circumstances or not), and at 7 years it's like it never happened (you can put the minimum required down, which is currently 3%). I am actually helping someone in the Midwest buy a home 2 years and 1 month after their short sale (with multiple 120 day late payments prior to the short sale) right now with Fannie Mae financing, closing this Thursday.
USDA financing does not have any published guidelines on how to view a borrower after a short sale, either does VA financing, however in general lenders will impose the same requirements as FHA financing (except for VA financing it's 2 years, not 3 years).
FHA short sale guidelines: http://www.fhaoutreach.gov/FHAHandbook/prod/infomap.asp?addr
Fannie Mae short sale guidelines: https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/se
I really do appreciate you taking the time to respond to my question. I was happy to see the quick and courteous responses. II will give the names and numbers to my husband and he will make the calls when its time. Thanks again.
You can talk with either Matt Thomas @ Merrimack County Savings and Bank 848-6691, or Nicole Emerson @ Citizens Bank 568-2271. Both are in downtown Concord. I have worked with both.
Usually it takes 3 years for a short sale to evolve back into a positive enough credit standing to purchase again. However, there are some programs that allow it in only 2 years.
I would be happy to help you in finding another place, or to chat about your options. I am a Certified Distressed Property Expert and know this market. Please email me directly at DaveEliason@remax.net or call me at 568-2400 cell. When you call i will send you some info that addresses your original question. Hope to hear from you.
While I have the utmost respect for some loan originators attached to financial institutions, in a situation such as yours going to a mortgage broker may make more sense since the originator can "shop for a YES answer" more easily than an originator associated with one institution. This is not so much about finding the cheapest rate as it is about finding lenders who view your personal financial data in the most favorable light. As you are probably aware, lending standards and rules have tightened significantly so I am not suggesting that there are folks out there taking shortcuts. Those bad boys are in jail!!
Anyway, my suggestion of a "go to" guy for you would be Greg Fischer of Alpine Mortgage. He works tirelessly for his clients and has made some challenging situations turn out well. You can reach Greg at Greg@Alpine-Mtg.com 603/365-0901 http://www.alpine-mtg.com
Chuck Braxton, REALTOR GRI
I can recommend a very knowledgable, experienced, and honest mortgage consultant who works out of the Concord area. His name is Stan Makowski and he's with Regency Mortgage (hq'd out of Bedford). Stan's been in the mortgage biz since the 80's and is a great point of contact for anyone thinking about buying. He's very hands-on and should be able to get you a pretty quick answer as to your qualifications. If he can't do anything for you at this point, he'll give you advice about what you can do to improve your standing -- he won't just give you answers you want to hear only to pull the rug out from under you down the road when you're already into a home search or ready to make an offer. Plus, it's a free consultation and no obligation. He works more or less 7 days a week, just like us RE agents, so don't hesitate to call him anytime and he'll call back if you don't reach him directly the first time. His number is 860-5860.
As for lease to purchase, it is happening a lot more than it used to but there is no specific site or way to find these LTP-possible properties, at least that I'm aware of. They're mixed in with all the others in MLS and are usually listed for an asking price (like all others) but will mention lease to own as a possibility in the description. All will be case by case, there's nothing standard in them. Terms will vary and can be negotiated. What's more, some property owners/sellers will entertain the option and this isn't made known in the listing. There aren't tons of these out there but, again, they are more common than they used to be and I do come across these listings in my searches through MLS. Having a dedicated agent working for you as your buyer agent, part of their work would be to dig around "behind the scenes" through their colleagues and contacts and past clients to try and drum some of the LTP-possible properties up in your desired location(s). Most likely, an LTP would be on a resale home vs. a newly constructed one. If you find you can qualify for a mortgage, another route you might consider is a multi-family home. This can improve your buying power, some can be converted back to single-families over time, and it's a great way to regain some financial power.