Financing in 95835>Question Details

Edgar, Other/Just Looking in 95618

Had a short sale 26 months ago. Looking into buying a condo in the Natomas area with 20% down. Is there any local lenders that will give a loan?

Asked by Edgar, 95618 Wed Oct 24, 2012

I know the Fannie mae guidelines allow for purchase after 24 months with 20% down, but called a mortgage company and they told me that due to the people that buy the mortgages being leery of previous short sales, they want you to wait 3-4 years.

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I had a short sale last year and my Realtor recommend for a home loan. I am very happy to be able to purchase again.
0 votes Thank Flag Link Sat May 18, 2013
You can get a loan 2 years after short sale. Some lenders won't but some will. There has been an issue with automated DU underwriting approval because of the code being used by the credit companies to report short sales. But we have a workaround for that. Let me know if I can assist.
0 votes Thank Flag Link Tue Apr 9, 2013
I've seen people buy a home 2 years after a short sale, so you may definitely be able to get it done. Contact me if you want me to give you the contact information for the broker I use.
0 votes Thank Flag Link Tue Apr 9, 2013
I know this is an old thread brought back to life by people below. But the thought it would be worth mentioning, the main reason borrowers get denied after a short sale is that their credit report is being reported in error. Most tradelines that I see actually say "Foreclosure or Foreclosure Started" This can be a deal killer because the AUS (automated underwriting system) actually will decline the loan merely because it thinks you had a foreclosure. My company allows a manual underwrite on all loans to compensate for the I-8 or I-9 MOP Code that is encrypted into your credit file. Worse case I work with a credit specialist who can wipe these clean. Fear not! There are some Home Loan Experts still out there.

Best of Luck!
0 votes Thank Flag Link Tue Apr 9, 2013
CLS Flex (.com) requires a 600 credit score. They state that they can do loans for people one day after foreclosure and 6 months after bankruptcy. I sure would love to see someone with a 600 score after suffering through a foreclosure. Not likely. Most people who went through foreclosure already spent their savings account to save the house. This company requires 6 mortgage payments in the account after closing, after putting 25% down. If the person had that kind of money, he/she wouldn't have lost the house. Make sure you read what companies can and cannot do before pulling the trigger.

Condo's are a beast to financing. US Bank is one of the few lenders that doesn't require a condo questionnaire allowing a lender to fund without all those questions that kill a loan. Wells Fargo is real good about being the first lender in a new complex.

I have access to private money. As long as you get the property at 75% of its value, then no money is required for down payment. The rate is higher (starts at 9.5%) and fees are higher but it's pretty much no questions asked. The credit report is not needed, only the scores. Foreign Nationals love this product.

Gosh, don't put 20% down on a condo unless someone is putting a gun to your head. Fannie Mae only requires 10% down with mortgage insurance. Pay the MI. It's better than putting that money down and seeing it go to the wind when the association implodes.
0 votes Thank Flag Link Mon Apr 8, 2013
Hi Edgar
A note about condo communities in general / I can speak 100% on financing for Natomas condos.
We are residents here in Natomas,and sell many homes here in the community.
Condos we have had our battle with on searching far and wide how to finance them.

Answer is Banks wont lend on Condo communities as a whole, conventional or not. We tried.
There is usually litigations going on, and most times its a No.

We work with very experienced lenders and one way to get around to have a chance to finance is to look under the HUD owned condos. They are bank owned (HUD OWNED) and are now stuck with the condo. HUD will finance FHA ONLY, Not conventional (for condo specific) which means your paying MI(Mortgage Insurance now for the lifetime of the loan).

Another consideration is buying a "townhouse" although its the same thing in my opinion..we are actually in a transaction for a buyer who tried to do the condo financing the word "townhouse" made it different in the banks eyes..

Its important to work with agents that know what you would be able to purchase.
They will need to some homework (checking with lender, homeowner association) prior.
There is a list of FHA condo communities the lender can get to you, however this list has shrunk.
Otherwise, its the waste of your time, and theirs.

The ones in Natomas are getting bought up by cash buyers all day long. Most other areas in Greater Sacramento, so the competition is fierce! Financing vs. Cash is no brainer, the banks taking the cash.

Feel free to call us anytime, there is more to write or other possibilities but bottom line extremely difficult to finance condos.
The Hubners
Web Reference:
0 votes Thank Flag Link Tue Apr 2, 2013
You will want to find a Mortgage Broker who also is a Mortgage Banker. They will have access to all loans on the market and can best fit your current needs into the right loan. Let us know if you are still in need of a loan at this point in time OR if you where able to get one and if you have purchased since Oct.
0 votes Thank Flag Link Mon Apr 1, 2013
The real estate market must be making a comeback.

Owners who have had a foreclosure 2 years ago just got approved to buy a new home. According to their site you can qualify one day after a foreclosure.

They have a program called Flexible Credit Loan which seemed too good to be true, but I have heard that many got approved and now have a pending offer, even after the short sale less than two years ago. Big banks said it could not be done.

Obviously it can.
0 votes Thank Flag Link Sat Mar 30, 2013
I can get you the exact information you need but I would need to talk to you about your specific situation including the condo cost. It's hard to give you a good answer without more information but I think you be able to buy something with 20% down. Call me to discuss.
Ted Greene
JCL Realty, Inc.
Web Reference:
0 votes Thank Flag Link Thu Oct 25, 2012
One company said no. Another company might say yes, maybe.
There are no slam dunk loans anymore these days.
Some properties won't qualify. Sometimes a buyer won't qualify for the most surprising of reasons.
But if you want to buy, you got to try.
(Thank you Johnny Cochran)
Make sure you consider putting a loan contingency in your offer.
0 votes Thank Flag Link Wed Oct 24, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
Nobody can say yes or no based on the information you have provided.
It truly is best to talk directly w/a lender, provide them a copy of recent
credit report, income & credit obligations, information on your short sale
and they should be able to give an answer on their guidelines withink 24
hours. And yes, it will vary from lender to lender. If they have recently
done a short sale buyer repurchase they will have an answer quicker.
Also an issue will be that the condo association has to pass FNMA or
FHA requirements.
You can either "dial for a loan" contacting lenders directly or find an
agent you want to work with and have them assist.
0 votes Thank Flag Link Wed Oct 24, 2012
Yes, you are more than qualified to get a loan (Conventional/FHA) through our lender pool, I can be reached below;

Al Som-Anya
Washington Financial
0 votes Thank Flag Link Wed Oct 24, 2012
getting a conventional loan after a short sale is possible after 2 years. FHA requires a 3 year wait. Buying a condo right now in North Natomas is much easier with conventional financing anyway. Feel free to contact me and I can send you some excellant lender referrals.
Mike Schubert
Better Homes & Gardens
DRE# 01894768
(916) 799-8300
0 votes Thank Flag Link Wed Oct 24, 2012
Yes, there are some lender that will loan people with 20% on a conventional loan after 2 years. Yet you need to pass each lender's criteria. Some are 24 months conventional, some are 3 years for FHA.
If you want more information about the lenders I use that do this, contact me privately, and would be happy to help.

Nancy S Bergman
Realtor - Lyon Short Sale Certified
DRE # 01893550
Lyon RE Downtown
2801 J Street
Sacramento, CA 95816
Primary: 916-400-1355
0 votes Thank Flag Link Wed Oct 24, 2012
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