Agent, Ocean County, NJ
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