The biggest contributing factor would be whether you continue making your payments while short selling your home or not. If not, you're proabably looking at 3 years before being able to buy another home even with a co-signer. Because your financial situation is like a fingerprint and unique to you, you should ask a lender or speak with an attorney. Good luck!
In addition, I would not be concerned about the market going further down. Right now demand is seasonally the lowest of the year. By next year the economy has recoverd further. In my opinion, as bad as it is right now, I believe this is the bottom. In general, I would not be too concerned of the market going further down anyway because you cannot expect to hit the absolute lowest point. You know only in hindsight that the low prices from a few months ago, were the lowest level. Even if prices go down a further 5 % then what does that really do in the greater picture? If interest rates are raised by 1% on a 100k loan then this costs the borrower as much as if he/she had borrowed an additional 15k.
In regards to the question (finally :-) ) you need to talk to a mortgage broker. Have you thought about the person who wants to cosign can get the mortgage and you both hold title?
You may consider private financing. They have more creative options that could fit your needs.
Great question. The answer to this question is multifaceted. Put plainly...YES you can buy another home with or without a co-signer. Exactly how oyu accomplish this really depends on the exact circumstances of your situation.
For example, if you sell your home on a short sale and want to re-purchase with conventional mortgage financing then you would have to wait at least 2 years. However, if you short sell your home and prior to selling you had no mortgage delinquencies then you could immediately re-purchase using FHA financing. If you were late then you would have to wait 3 years in order to purchase using FHA financing.
It's interesting to note that FHA allows for what is called a non-occupying co-borrower (co-signer). This person does not have to live in the house but they can assist you with qualifying for the loan both from a credit and income perspective. Liabilities of both individuals would be included in the debt to income calculations. In this scenario other factors will be closely looked at by the underwriters. Its best to consult and FHA lender for further clarification.
I like the option several people presented about owner financing. In the current real estate marketplace this option is becoming more and more popular. This scenario would allow you to immediately purchase a home provided you had money for down payment and could illustrate your ability to repay. You may not even need a co-signor. Things to be mindful of in this situation are whether or not the seller has an underlyinng mortgage balance and you want to make certain that the real estate note or contract for deed, etc is notarized and recorded. If the seller is not able to record the documents because of the underlying note I would be very cautious. You will definitely want some title insurance. A good real estate attorney can guide you throught this type of transaction.
Another option would be a local community bank, finanical co-op or credit union. Especially one that portfolios their own mortgages. They may consider the co-signor scenario especially if your co-signor has a stong credit and financial profile. Credit Unions are really good. They are all about members helping members. Check around your area and I'm sure you will find a few.
For more information about short sales here is a link to a pdf I posted: http://www.box.net/shared/6e9yxcf04j
Or feel free to contact me. Good luck!
Robert Wiseman, Founder
Intergy Realty Solutions, LLC | Creating choices, opportunities and peace of mind.
Texas | 4801 Woodway Dr. Ste.300E | Houston, TX 77056
phone (713) 826-4317 | fax (888) 678-1443 | email: email@example.com
But the answer is, yes. Depending on the circumstances, you can probably turn right around and find another lender who will risk additional money on you. Strange...this credit score myth that we live by.
Talk to your lender or several. Your individual situation and that of the co-signer will drive the situation.
To learn more about short sale options on the selling side as your Realtor to show you the Short Sale Advisory published by the State of Arizona. To see an online see the appropriate link at: http://arizonahomesland.com/forsellersorlandlords.html
Arizona Homes and Land
Watching the answer start to come in and just wanted to once again state it is possible to Short Sale and then turn around and buy right away.
I'm not saying its easy or often done, I'm saying technically its possible under very strict guidelines.
We would need to talk further. Most will say its not possible because it is rare, difficult and not many qualify.
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It depends on number of factors, the real short answer is that it is possible to purchase immediately after a Short Sale if the situation is perfect with out a co-signer. Very few have the perfect situation that allows them to purchase immediately with out a co-signer but a path does exist. Other avenues are also available if you have individuals willing to help you out as you indicate. The scenario deserves very careful and deliberate consideration of the exact circumstances involved.
On of the variables is the Short Sale, one would need to carefully negotiate the Short Short Sale to position you exactly as needed to be eligible.
It is possible!! I have a group of individuals that could potentially do everything possible to put you in a situation that provides the greatest opportunity for success. It will be a team effort from start to finish to accomplish your goals.
You next step will be to meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there are any mortgae programs that you may quailify for giving your situation, they can tell you if a cosigner will help.
Good luck with your sale and new purchase, i have a blog on how to complete a short sale with yips and advice on how to get it approved.
Please see my blog for tips and advice on getting a mortgage in todays market.
If you're planning to buy another property, and you have to get a loan, the next lender will undertake the necessary research to determine the borrower's financial wherewithal and credit-worthiness. Both you and the co-signer will have to go through the process of being pre-approved.
Generally, once you do a short sale, and if you work hard to fix your credit which will take a hit but not as bad as getting foreclosed upon. It will likely take you 2 years to get your credit back in gear at which point you may be able to qualify to buy another home, again depending on your income, etc.
Typically, mortgage underwriters look at the weakest link in a co-signing situation. I, like Dan, am going to guess, "not for a few years" depending on the type of loan you want to get. Some have you wait longer than others when there has been challenged credit in the past. The VA is probably the easiest and shortest route, if you are a veteran. That said, there are creative ways a co-signer can help. Have the co-signer buy the home in his/her name with a down payment coming from you, and do a Lease Purchase back to you for the two or three years you will in all likelihood have to wait. We just did one, and it worked out fine. The folks who had a foreclosure contributed the amount of the down payment to the co-signer, actually the buyer now, as an earnest deposit on the future sale of the home back to themselves. Their rent is the mortgage payment to the buyer. I'm making the paperwork for this sound easier than it really is, but it's very "doable".
Chances are, not right away. There are lots of questions I would need to research before I could say no, but the odds are against you for at least 2 years. To get a useful answer, you should meet with a mortgage broker and discuss your situation in full. When all the facts are on the table, they can advise you and give you a plan whether for now, or later.