Home Buying in Boise>Question Details

Ck, Home Buyer in Boise, ID

Can I get a mortgage with 685 credit score and one year after short sale in another state on property that was converted to rental property?

Asked by Ck, Boise, ID Wed Feb 27, 2013

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I had a short sale last year and my Realtor recommend http://www.cfs-mortgage.com/flex for a home loan. I am very happy to be able to purchase again.
0 votes Thank Flag Link Sat May 11, 2013
The short answer is yes, but for most people the answer is no at least on a "A paper" loan.
It is yes if:
1. You could show a "bona fied" hardship.
A. Death, injury or sickness in the family
B. Divorce
C. A drop in income
2. You had no late payments before the short sale

The problem is usually number 2 as most lenders refuse to consider you for a short sale if you are up to date on the payments.

On the other hand there are private lenders out there, most have really high rates but seller financing could do the trick.
0 votes Thank Flag Link Thu Apr 4, 2013
The short answer is yes, but for most people the answer is no at least on a "A paper" loan.
It is yes if:
1. You could show a "bona fied" hardship.
A. Death, injury or sickness in the family
B. Divorce
C. A drop in income
2. You had no late payments before the short sale

The problem is usually number 2 as most lenders refuse to consider you for a short sale if you are up to date on the payments.

On the other hand there are private lenders out there, most have really high rates but seller financing could do the trick.
0 votes Thank Flag Link Thu Apr 4, 2013
YES, you can get a mortgage with a 685 credit score even one year after a short sale. However, lots of lenders will turn you down if they only deal with the cream of the crop loans. FHA actually even allows for doing a new FHA loan in certain circumstances provided you were not behind in payments on the short sale on the same day it closes! Most lender overlays (requirements set forth by whomever they will be reselling the loan to) won't allow this so they end up turning you down.

Some lenders are "portfolio" lenders meaning they don't resell the loans. They can look at a file and make individual judgement calls on them since they aren't trying to fit every mortgage they do into the same constraints!

There are also hard money lenders that with a high enough down payment and a high enough interest rate, they will lend to about anyone! The closer you fit into "normal" the less they will charge you but almost always higher than "normal".

Not all lenders (nor Realtors) are created equal. Each has a different experience level, niche and tolerance level. It pays to shop around for both!

It has taken me years to build my database of "out of the box" lenders, so I don't just post their contact data here. If you would like them, feel free to contact me.

Thanks and best of luck!
Jim Paulson, CRS, GRI, EPRO, SRES
Owner / Broker - Progressive Realty Corporation
0 votes Thank Flag Link Wed Feb 27, 2013
The typical waiting period is 24 months after a short sale, but there are always exceptions and variables to the rule. There are many mortgage options available to people with bad or no credit that some realtors do not know about or are not perusing. I work with a lot of people who have bad or poor credit. If you are looking to own property and you want more information on ways to finance contact me ( Mark Pecchenino @ 208-890-9952) and we can discuss your specific situation and then I may be able to suggest some solutions when I have more facts as to you specific property needs and financial situation.
0 votes Thank Flag Link Wed Feb 27, 2013
I agree with Mr. Burroughs. The common waiting period is 2-3 years after the short sale. It may be worth checking with a lender to see how it was reported. I have seen instances where the lender never reported the short sale. You'll want to start getting your credit squared away now so you're not scrambling when the time comes.
0 votes Thank Flag Link Wed Feb 27, 2013
What Tim is saying is my understanding. At least you did not get foreclosed on as that makes it even longer waiting period. You can contact my lender, Darci Tullock, 208-440-2034 with Waterstone Mortgage. When you are ready to purchase in another year, you can contact me.
0 votes Thank Flag Link Wed Feb 27, 2013
According to my lender, Jane Hopkins of Idaho Independent Bank in Boise, Idaho, you need to wait at least two years from the time you closed on your short sale to qualify for a new loan, and that new loan would need to be an FHA loan. You may call her directly at 208-947-1127 if you have other questions.
0 votes Thank Flag Link Wed Feb 27, 2013
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