The U.S. Department of Housing and Urban Development (HUD) recently announced the â€œBack to Work â€“ Extenuating Circumstancesâ€ program, aimed to help people who have lost their home through foreclosure, short sale or bankruptcy. HUD has reduced the previously required minimum of 36 months to 12 months before they may be able to finance another home, given that they meet HUDâ€™s minimum eligibility requirements.
You must have 20% down and at least a 660 credit score (which you do).
It's a "Portfolio Loan" that is much better than "Hard Money" which up until recently was the only option.
Let me know if I can help!
Yes, it used to be pretty cut & dry that you have to wait 3 or 4 years but it is becoming more flexible since home prices have increased so lenders fell there is less risk.
It's just another new niche programs that is portfolio, not fannie or freddie, so not everyone will have them.
Buy a home after foreclousre, short sale, deed-in-lieu-of or bankruptcy expert
Helping families/people that have lost their homes get back into another in as little as 6 months.
quality lender who can give you the definitive answer. You are a part of the new wave of
buyers who are requalifying to purchase based upon the timeframe from their short sale.
Congratulations on working on your credit and getting yourself in a position to buy. I am
sure 3 years ago you did not forsee this combination of cheap prices and cheap loans
that will give you a very affordable payment on a great home, but welcome to a great
opportunity. FYI we just closed a purchase with a client who we helped short sale their
home 3 years ago and it was a relatively easy transaction.
Thanks for your question, you are in good shape, as your credit score is 690
And you have waited for three years. You are eligible now for a new mortgage.
Give us a call.
Thanks and have a great weekend.
Since inventory is so low, there is alot of competition for buying a home. Expect multiple offers situatioins and that you might not win on the first offer you make. If you find you select a short sale, you have the wait time for the lender to approve the short sale....
November is just around the corner. Work with an experienced agent who knows how to present you in the best light so that your offer gets the best chance of being accepted.
FHA is a great program and tool that allows those without great credit and large down payments to purchase a home but compared to a similar conventional alternative it almost never makes sense to go FHA, regardless of if the loan might be able to be assumed one day in the future.
Below is a link to another discussion on Trulia on the same subject (i.e., buying after a short sale).
Good luck to you.
DRE # 01326917
Ferdig Real Estate Solutions
If you have not allready done so I would contact a mortgage professional
I work together with Keith Collins at Alpine Mortgage in Roseville he would be able to look at your crdit and determine the best way to go forward.
I can be reached @
Keith can be reached @ 916-888-1212.
Hope this helps
This is one of the questions I get asked the most. The answer is, "it depends"...
It depends on what kind of mortgage you are applying for.
If you are looking for an FHA loan you can qualify 36 months after the sale date of your old home. In this case there is no penalty of any kind, if you qualify for the loan you get the same rate and down payment options as anyone else. There are also exceptions to this rule for some buyers that can demonstrate an accepted hardship, but this is VERY hard to get approved as FHA has strict guidelines as what an acceptable hardship is and isn't.
If you have 20% down you can potentially apply and qualify for a conventional loan today. But only if you put 20% down. Conventional guidelines allow for a new purchase 24 months after a short sale closing if the buyer is putting down 20%.
Check out this link for more detailed information but basically 2 years if you have 20% down and 3 years if you don't. Also if you have VA eligibility or are buying in a USDA-eligible area 2 years may work.
FHA asks that you wait 3 years from the date of the transfer. November will be your time! Your application must be dated 3 years and 1 day from the transfer. You will only need the minimum down payment of 3.5%.
Be prepared to write a compelling explanation to the new lender as to why you had to sell at the time you did.