Dana,  in Henderson, NV

Second home purchase after short sale

Asked by Dana, Henderson, NV Thu Oct 10, 2013

I did a short sale in 2011. My credit score is around 680-700. I live in NV but am looking to purchase a house in FL to have as a secondary residence. What are the rules for purchasing a second home thru Fannie Mae after a short sale?
Most lenders will not even talk to me stating that I need to wait at least 3 years after a short sale.

Help the community by answering this question:


Wanting to buy a vacation home after you did a short sale in 2011? We don't know of any lender that would touch such a transaction.
1 vote Thank Flag Link Thu Oct 10, 2013
I know of a few lenders, including where I work that do short sales and foreclsoures from 1 day after to 1 year. Rates will be around 2-3 % higher than the best rates though.
0 votes Thank Flag Link Thu Aug 6, 2015
Have you purchased a home her in Florida yet? As others said, guidelines have changed now. If you would like to be put in touch with a lender here that can assist you give me a call at 239-707-4575 or email me at leecountyrealtor@earthlink.net
0 votes Thank Flag Link Fri Oct 10, 2014
New FHA guidelines just came out on the 8th that supposedly forgives the time lines and down payments generally needed. I believe you have to be able to prove you had a loss of income or hardship that caused your short sale. Your FHA lender should know about it if theyre worth dealing with. But be careful of crooked loan sharks.
0 votes Thank Flag Link Fri Oct 10, 2014
It's a 2 year wait after Short-Sale for Fannie loans. You're well past that point. You'll need 20% down until your 4 years after the Short-Sale. We do these all the time.
Web Reference: http://www.craigbosse.com
0 votes Thank Flag Link Thu May 22, 2014
OM Gosh, unlike the rest, I'll tell it to you straight.

You did the dirt deed, you walked away from your financial obligation and promise to pay, regardless, its considered Mortgage Homicide by Banks who collectively have, and are taking SS hits!

What you gotta do is get back in the game asap to buy again at these low prices as they are going up at 2001 appreciation rates!

Only difference is....this time we'll know when to step off the train and sell for MAX profit before the train goes over the next cliff in 15 yrs!

See the loan program for your situation at: http://WWW.PRO-OPTION.COM

0 votes Thank Flag Link Sat Oct 12, 2013
please contact me direct birgitswflrealtor@gmail.com
0 votes Thank Flag Link Sat Oct 12, 2013
There other alternatives in securing a mortgage after a short sale, other than Fannie Mae. Many sellers understand and are sensitive to the fact that many good quality, upstanding folks have been thru a situation such as yours and just don't meet the requirements to qualify for a standard loan.. Some of these Sellers are in a position to provide alternative short term (5-10 year) financing at reasonable market rates. These mortgages do not require approval by anyone other than the Seller. However, you would need to be in a position to make a reasonable downpayment and meet adequate terms. Sometimes these mortgages are amortized over a longer period of time than the actual mortgage (5-10 years) so your payments would be comparable, in nature, to a regular 30 year mortgage and then a larger balloon payment at the end of the actual mortgage term. The terms would be something negotiated with the Seller.

As Realtors, The Lasky Team, we introduce this idea with Sellers to give it consideration. If it is the right match up for Buyer and Seller, it is a win-win for all.

We have done many of these transactions and find they really do fill a need in the market place.
Currently we have a listing coming on the market with Seller financing for a 2 bedroom 2 bath condo in the heart of Sarasota that is really a jewel.

If we can be of any further help to you Dana, it would be our sincere pleasure. Our goal is to "Exceed Your Expectations".

Rita Ferrell Lasky
The Lasky Team
Broker Associates
Sarasota, FL
0 votes Thank Flag Link Fri Oct 11, 2013

With as little as 10% down buyers can purchase a Primary Residence, 2nd Home or Rental Property now!

Reasons to purchase now:

1. Recover past lost equity through buying a Florida property at these extremely low price

2. Retain as much income as possible with Mortgage Interest write off savings on taxes

3. Re-establish mortgage credit quickly with a new Mortgage after the bad

4. Re-finance with new mortgage credit established while rates are still low

90% LTV- Short Sale, BK, Foreclosure Forgiveness
80% LTV- FIX n’ FLIP Invest. Prop.
70% LTV- Soft and Hard Money


Steve McRory

Pro Option Mortgage/ Florida



Ph: 888 662 4404

0 votes Thank Flag Link Thu Oct 10, 2013
It depends on your down payment. Anywhere from 2 to 7 years. It looks like to qualify this year you would need to put 20% down

You'll need a conventional loan or a portfolio loan (which is usually MORE restrictive) since this will not be your primary residence. FHA guidelines generally require a 3 year waiting period, but you cannot do FHA unless it's your primary home.

The info below comes direct from the Fannie Mae underwriting guide

The following waiting period requirements apply:
Two years 80% maximum LTV
Four years 90% maximum LTV
Seven years LTV ratios per the Eligibility Matrix

Technically, their is also an exception that shortens the time to 2 years with only 10% down if you have a fully documented extenuating circumstance that led to the short sale, such as loss of employment, extended illness, or divorce. However, you probably wouldn't be able to get approved for PMI on that loan (they have different guidelines) and since it is not the primary roof over your head (it's a "luxury") I have a gut feeling that most underwriters would not be too sympathetic towards making this exception.

Good luck!
0 votes Thank Flag Link Thu Oct 10, 2013
Hi Dana,

What part of Florida are you looking to purchase in? I have some excellent lenders that can get you financed as long as your income to debt ratio is fine. I work Cape Coral and Fort Myers and would love to assist you. Feel free to email me at leecountyrealtor@earthlink.net or call me at 239-707-4575
0 votes Thank Flag Link Thu Oct 10, 2013

I am currently working with a client who was able to get financing after only 18 months after their last short sale. Email me a gulfcoastre@aol.com and I will put you in touch with the loan officer.

Jake Hansen
No Nonsense Real Estate
0 votes Thank Flag Link Thu Oct 10, 2013

I can get you in touch with a great lender who will gladly speak with you about your options. Email me at soldincapecoral@gmail.com with your information.


Candace Decker
Realtor, Florida's Realty LLC
0 votes Thank Flag Link Thu Oct 10, 2013
Second home will be 3 years with conventional per current rules. Owner financing might be a good option for you though.
0 votes Thank Flag Link Thu Oct 10, 2013
And as an aside, FHA will now allow one year from date of short sale or foreclosure for primary residences.
Flag Thu Oct 10, 2013
You are correct that most lenders will not discuss a mortgage until 3 years. There are a few lenders in this area that will loan "hard money" for anyone (investors, 2nd home buyers, or primary residences) in less than 1 year after a short sale, but the interest rate is high (8-10%) but it is a fixed rate and there are points.
0 votes Thank Flag Link Thu Oct 10, 2013
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