Financing in 94588>Question Details

woz16, Home Buyer in Orlando, FL

what is wait time for refi after a shortsale?

Asked by woz16, Orlando, FL Wed Oct 3, 2012

I short saled a rental property almost 3 years ago (3 years in January) and have no delinquencies on my primary home, good credit. When can I refi my primary home?

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Shane Milne’s answer
With FHA financing just 3 years after a short sale (with late payments) is needed - if your mortgage payments & other debt payments were on time for the 12 months leading up to the short sale, and weren't behind at the time of short sale, then you could've refinance with FHA right after the short sale (no wait).

Conforming (Fannie Mae/Freddie Mac) financing requires 4 years after the short sale and then 90% loan-to-value financing is possible, or after 2 years and prior to 4 years, then refinancing to 80% loan-to-value is possible. After 7 years then maximum loan-to-value is possible, currently 95%.

If your current loan is owned by Fannie Mae or Freddie Mac, you may be eligible for a HARP refinance, and if you go back to your same mortgage servicer for the refinance, they are able to waive short sale, bankruptcy & foreclosure waiting period requirements. However a different lender than yours would not be able to waive short sale, bankruptcy & foreclosure waiting period requirements, as those more lenient guidelines are only for "same servicer".

To check if Fannie Mae owns it: http://www.knowyouroptions.com/loanlookup
To check if Freddie Mac owns it: http://www.freddiemac.com/mymortgage/

Shane Milne | Lending in all 50 states | NMLS #81195
1 vote Thank Flag Link Wed Oct 3, 2012
Yes you do qualify now for 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.
0 votes Thank Flag Link Sun Sep 1, 2013
Scott is correct there are several factors to consider .Contact a lender.
0 votes Thank Flag Link Wed Oct 3, 2012
You may be able to know, it will depend ion what your credit looks like, how much equity you have and what type of mortgage you like. you should start with meeting with a local and trusted loan officer who can prequailify you and let you know what is available. Anyone else may be guessing without see ing your full financial picture.
0 votes Thank Flag Link Wed Oct 3, 2012
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