Financing in 33646>Question Details

funnyguy84, Other/Just Looking in New York, NY

I have a short sale on my credit report from a year ago but my credit is 650 I am looking to purchase but I have heard I have to wait until 2 years?

Asked by funnyguy84, New York, NY Mon Mar 25, 2013

Is it possible to buy a property even if I have money to do so but have the short sale on my credit report!?

1 vote Share Flag Financing in 33646

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Unfortunately you waited too long my friend. As of August 18, 2012 FNMA and FHLMC changed the guidelines with regards to financing a home after a short sale. Prior to that there was NO restrictions for consumers wanting to buy another home after a short sale (click on the link below top of pg 5 you will see the current and previous guideline). God knows I tried putting out the word to combat all the misinformation that Realtors and other Lenders were writing here and other websites.

Nevertheless, as of today if you want to re-enter the housing market and finance a home using a Conventional Loan, you will have to wait 2 years from the date of closing and put down 20% or you will need to be a Veteran and go $0 VA. Since you don't live in a suburban or rural area, we can't offer you a USDA RDL which is the quickest and best way to finance a home after a short sale ( as soon as 1 year see below link) or three years in order to go FHA.

Best of Luck!…
1 vote Thank Flag Link Tue Mar 26, 2013
Of course you can buy. There are plenty of opportunities that don't require an institutional lender. A lease option, for instance, can put an institutional loan to shame when it come to building equity. Think outside of the box, you'll be better off.
0 votes Thank Flag Link Tue Mar 26, 2013
The answers are correct most lenders required 2 years. You might want to rent for another year, below your means, and save as much as you can, so when you are ready you can buy what you want and lowered your payments with a more sizeable downpayment.
0 votes Thank Flag Link Tue Mar 26, 2013
Try GTE credit union if have 20% to put down and a very stable job history and buying below your means. They gave one of our tenants a mortgage only a few months after a short sale.
0 votes Thank Flag Link Mon Mar 25, 2013
Most of the major lenders will require you to wait a minimum of 2 years. I've attached a link to a chart below that shows you more on which will let you buy and which will not after a short sale. Good luck!
0 votes Thank Flag Link Mon Mar 25, 2013
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