Home Buying in 17042>Question Details

Jmg, Other/Just Looking in Lebanon, PA

I am 2 years post short sale, credit about 690 and husband over 700. Can put up to 5% down. Any lenders in PA or do I have to wait another year?

Asked by Jmg, Lebanon, PA Mon Oct 17, 2011

Husband never on short sale, need both incomes to qualify for the home we are interested in currently. Short sale did have late payments. Some sites say the wait is 3 years and some 2 years. Is there any out there in PA that would lend after 2 years. Thanks!

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I have had people buy a new home in 1 year in past but with recent changes it will depend on the lender. You might want to check with a mortgage broker to see if they are aware of any doing it after 2 years. I would also go to smaller banks that portfolio their loans. Try Fulton, Credit union, Jonestown Bank. There are quite a few. With only one of you having had a short sale it might work. It can not hurt to try.
1 vote Thank Flag Link Fri Nov 18, 2011
Try calling a few different "local" lenders to see if you qualify - you could also try Nancy Patt, Mortgage Network - 717-203-3382. She has had success working with folks in some of these situations.

I wish you success!

0 votes Thank Flag Link Thu Dec 19, 2013
Small banks, credit unions or try calling Jeremy Frey at (570) 778-9293
0 votes Thank Flag Link Sun Dec 15, 2013
Lenders requirements / restrictions have changed over time. Check if you qualify for a mortgage. Try http://www.whywaitbuytoday.com
0 votes Thank Flag Link Sun Aug 25, 2013
It really depends on the lender. You can purchase after 1,2 or 3 years depending on the hardship. I recommend searching the internet for information on lenders and their short sale waiting requirements.
0 votes Thank Flag Link Sat Sep 29, 2012
with 5% down payment you need FHA loan, but for FHA loan I believe you need to wait 3 years.Best things you may talk to a mortgage banker.Good luck
0 votes Thank Flag Link Tue Oct 18, 2011
Recommend to contact mortgage broker complete loan application and your financial documents determine IF you can qualify for a loan

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Tue Oct 18, 2011
Many lenders have just changed the rules to be 3 years. I called my mortgage specialist and they do have special Circumstances that can be done in the 2 year time frame.
Call Nancy Patt, Met-life, 717-203-3382 and she will discuss the special circumstances and see if you will qualify.
Please let me know when you are ready to write the contract..
David Hepp
Re/Max of Lebanon County
717-507-4836 - cell
717-270-8808 - office
0 votes Thank Flag Link Tue Oct 18, 2011
You have options but unfortunately the best one, requires 3 years after a short sale. You need to look into FHA at 3.5% down. If you are 2 years out from the short sale you would have to use conventional. As for conventional financing, with many markets declining, they would require a large down for the LTV to be in line with the risk of the declining collateral (the property)

Here is what HUD said about FHA after a short sale.

The Department of Housing and Urban Development (HUD) released a letter to lenders regarding borrower eligibility for a new Federal Housing Administration (FHA) mortgage after pursuing a short sale.

According to the letter (available to download here) and effective immediately, borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement “to take advantage of declining market conditions” or to purchase another property at a reduced price.

Borrowers are cleared for a new FHA-insured mortgage if they were current on their previous mortgage and other debts at the time of the short sale and if the proceeds from the short sale serve as payment in full.

If a borrower executes a short sale while in default on their mortgage would not be eligible for a FHA-insured mortgage for three years from the date of the pre-foreclosure sale. Some lenders can make exceptions if the default was due to circumstances beyond the borrower’s control such as the death of the primary wage earner.

But, it means that anyone eligible for the Home Affordable Foreclosure Alternatives program (HAFA) would not be eligible for a new FHA-insured mortgage for three years.
0 votes Thank Flag Link Mon Oct 17, 2011
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