Financing in 95818>Question Details

Bonnie, Other/Just Looking in 95818

I would like to know how long after a short sale do you have to wait for a mortgage? I had to do a short sale in'09 . It will be 3 yrs in Nov

Asked by Bonnie, 95818 Sun Jul 15, 2012

'12 . The pmts went 120 days late, which is what the bank told me I had to do. My credit is up to 690 and I have some money to put down. When the time is right will I be able to qualify for a mtg again? Thankyou.

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Yes there is a new program for FHA by HUD for people in your shoes you just need 12 months from the date of the Bankruptcy, short sale or foreclosure.

The U.S. Department of Housing and Urban Development (HUD) recently announced the “Back to Work – Extenuating Circumstances” 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 HUD’s minimum eligibility requirements.
3 votes Thank Flag Link Sun Sep 1, 2013
3 years for FHA 3.5% down payment - good luck!
0 votes Thank Flag Link Sun Dec 1, 2013
We can approve a buyer just one day after Short-Sale or Foreclosure!

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!

0 votes Thank Flag Link Thu Sep 19, 2013
There are programs now that can do a loan after a short sale even you were late 12 months late.
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.
0 votes Thank Flag Link Mon Sep 2, 2013
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 Sun May 19, 2013
With a foreclosure a few years ago I thought I would be out of the home buying market for a while. My Realtor told me about the Flexible Home Loan Program,, and I got approved right away. Looks like there is no waiting time to buy after a foreclosure. To all those in my position, there is hope.
0 votes Thank Flag Link Sat Mar 30, 2013
You should contact a local Realtor for their referral to a experienced lender.
0 votes Thank Flag Link Sun Aug 5, 2012
It sounds like you have your finances in order now, if you have a stable job history you should be in a position to get another mortgage conventionally in November.

Good Luck,
Bob Patrick
Buy a home after foreclousre, short sale, deed-in-lieu-of or bankruptcy expert
Movin-On LLC
Helping families/people that have lost their homes get back into another in as little as 6 months.
0 votes Thank Flag Link Mon Jul 16, 2012
Hi Bonnnie, You are on track to purchase in November, but it is best to sit down with a
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.
0 votes Thank Flag Link Sun Jul 15, 2012
Find a Mortgage Broker right away for advice in your proposed zip code. You can search "Find a Pro" in the header of this website. From your friends at
0 votes Thank Flag Link Sun Jul 15, 2012
I think it's important to put all the pros and cons out there so that the buyer can make an informed decision about which loan product will be the best solution in the long run. During the refinancing boom, neither loan agents nor lenders thought it was important to mention that borrowers were losing their anti-deficiency protection when they refinanced. Nobody thought back then that they had to worry about foreclosure and I suppose the loss of anti-deficiency protection would not have been considered worthy of serious consideration. Now, that we are in this mess, some might think differently and maybe wish they had known. Apparently Senator Corbett thought that extending anti-deficiency protection to refinanced loans was important since she authored SB 1069 which was just approved by Governor Brown. Without that crystal ball, we just don't know whether assumability could ultimately outweigh the cost benefit of a conventional loan. All we know is that Bonnie can't take it into consideration if nobody deems it worth mentioning.
0 votes Thank Flag Link Sun Jul 15, 2012
Ute Ferdig -…, Real Estate Pro in New Castle, DE
Hi Bonnie

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.
0 votes Thank Flag Link Sun Jul 15, 2012
Start looking now. Pull the property profile on when the sale was recorded. Make sure that date matches the date on your final settlement statement (just in case there was a delay) The date on your settlement statement would prevail if they are different.

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.

Good luck!
0 votes Thank Flag Link Sun Jul 15, 2012
Just a quick add to the conversation, I cannot disagree more with the idea that one should seriously consider an FHA loan over a conventional loan because the FHA would be assumable in the future. The MIP on an FHA loan makes them MUCH more expensive when compared to a conventional loan. The cost difference for someone in that scenario makes the potential of someone assuming the loan one day insignificant.

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.

0 votes Thank Flag Link Sun Jul 15, 2012
Bonnie, congratulations on getting your credit score back up to 690. You have already received good answers as far as being able to qualify for an FHA loan after 3 years or a conventional loan after 2 years with 20% down. Even if you should be able to qualify for a conventional loan with 20% down, I would seriously consider an FHA loan because FHA loans are assumable, which could become very valuable in future years when interest rates have gone up. Should you ever find yourself again in a situation of having to sell due to circumstances beyond your control, it would be easier to find a buyer because the buyer could assume your loan with a low interest rate.

Below is a link to another discussion on Trulia on the same subject (i.e., buying after a short sale).

Good luck to you.

Ute Ferdig
DRE # 01326917
Ferdig Real Estate Solutions
0 votes Thank Flag Link Sun Jul 15, 2012
Ute Ferdig -…, Real Estate Pro in New Castle, DE
I think that with your current score you should be good to go now.
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
0 votes Thank Flag Link Sun Jul 15, 2012

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.…

Greg Cowart

Innerwork Mortgage
Roseville, CA
0 votes Thank Flag Link Sun Jul 15, 2012
With 20% down, you can go with a conventional mortgage 2 years from the date of the transfer (that is your loan application must be date 2 years and 1 day after the transferred of the short sold property)

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.
0 votes Thank Flag Link Sun Jul 15, 2012
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