Home Buying in Bergenfield>Question Details

Terry, Home Buyer in Bergenfield, NJ

can you buy a short sale home with fha loan?

Asked by Terry, Bergenfield, NJ Sun May 31, 2009

I'm buying a house that is on short sale. Bank has just approved it. I'm a first time home buyer. The only option for me is FHA . I don't know whether FHA takes longer to process than a conventional loan.

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Joanne’s answer
Good Morning Terry, Congradulations on the possible closing of your first home. That is exciting. I am assuming that you have already been pre approved or pre qualified by a Lender for the Bank to have approved of your Short Sale Contract? I also am assuming that your Contract stated that you were going to apply for an FHA Loan. The answer is yes you can secure and FHA Loan with a Short Sale, providing it has third party or Lender Approval which I am assuming you have received. As far as your question whether FHA takes longer to process then conventional, it depends on your choice of Lender, their processing team, underwriters, how backed up they are, and of course you, making sure everything they ask for you deliver immediately. Also, suggestion, make copies of everything that you give them, because sometimes due to volume those things get lost or misplaced, and you will be asked to submit again. Have things at your fingertips, keep a file, document conversations, dates, what, when, and whom you submitted these docs to. The appraisal is different from conventional, remember the Feds are insuring this loan, so they require a different criteria then a conventional loan would in their appraisal process, however, it also depends on what type of FHA loan your are applying for and what condition the property is in and the amount you are asking for. In any case, you are stating that yu do not qualify for a conventional loan, so just be patient, even though at times it can try yur patience, LOL and go with it. It is the end result that counts. Much luck on your journey.

Joanne"Jodi" Fridson GRI, ABR, EPRO , NOTARY OF NEW JERSEY
KKELLER WILLIAMS, JERSEY SHORE REALTY
1 vote Thank Flag Link Sun May 31, 2009
so you can purchase a short sale house with a fha loan
0 votes Thank Flag Link Mon Mar 15, 2010
Hi Terry, yes you can. FHA loans can take longer to process - your mortgage rep will be best able to address with precision.

How exciting that you are buying - such a great time with prices low, rates very good, and the tax credit providing even greater benefit.

Good luck to you.

Best,
Jeannie Feenick
Search and connect at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sun May 31, 2009
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