Financing in 91301>Question Details

Lahomebuying, Home Buyer in 91301

Interest rates on next mortgage after a shortsale?

Asked by Lahomebuying, 91301 Thu May 31, 2012

My husband owned a condo which he had to short sale about 1.5 years ago - we weren't married yet and I wasn't on the loan. It sounds like he needs to wait two years before he'll qualify for a mortgage again. His credit is improving and we have 20% down. I have very good credit and we both make about the same amount of money currently. When we start looking for homes to buy what type of interest rate are we likely to qualify for?

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Emily Knell’s answer
Did your husband miss any payments when doing his short sale? How many? I think with a lender having you both as "co-borrowers" you may be able to get a loan through with a letter of explanation & get THE going rate, if the lender can use YOUR higher credit score, but also his income so you can qualify for what you want / need.

Shoot me an email directly if you'd like to talk to me some more. I don't look back on this same Trulia thread for answers posted after mine.


EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
0 votes Thank Flag Link Thu May 31, 2012
You may have found a loan officer by now but in case you haven't my bank does have a 2nd Chance loan that involves no seasoning after a short sale or foreclosure. We require 20% down and a 660 credit score.

We also offer all of the conventional loans with the standard seasoning requirements. We are a direct lender for Fannie, Freddie, FHA and VA . We also have bank backed products as well.

The rates are very competitive. I would be happy to give you more detail over the phone. Feel free to look over my website as well.
0 votes Thank Flag Link Wed Nov 13, 2013
12 months after a Short sale you're now eligible for a new HUD program for an FHA loan, as long as you have reestablished positive payment history. Interest rate will be around the average..

The U.S. Department of Housing and Urban Development (HUD) recently announced the “Back to Work – Extenuating Circumstances” program, aimed to help people who have lost their home through foreclosure, short sale or bankruptcy. HUD has reduced the previously required minimum of 36 months to 12 months before they may be able to finance another home, given that they meet HUD’s minimum eligibility requirements.
0 votes Thank Flag Link Thu Oct 24, 2013
There will be a couple of factors that will determine if you can get financed in 5 months and if so what rate will be. So let's start with getting on first base. First, I am considered expert in helping people purchase after a short sale, and I am telling with certainty depending on how the previous lender reported his mortgage loan tradeline(s), it CAN & WILL make a difference.

I have written about the notorious I-9 MOP encoding on consumer's credit reports that you don't see. We lenders are the only ones who can see this on your credit report. The good news is I have a team that knows how to handle this. I can assure you, that if your Husband's credit shows a Pre-Foreclosure due to rolling late mortgage payments 120 days plus, you will have an issue getting an AUS approval.

Therefore unless we do a Portfolio Product (not FNMA) or your husband's loan is manually underwritten it may be a problem. If I were you I would look into as soon as possible. You can check yourself by going on to http://www.annualcreditreport.com and seeing if the remarks "Foreclosure Started, or Repo, etc." shows on the tradeline(s).

If it does, you may need to some special handling and I would start massaging the credit asap so once you hit that 24 month mark, you'll be ready to go. Let me know if you have any questions, you can contact me direct as I don't follow each question after I leave my comments.

Best of Luck!
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Sun Jun 2, 2013
You should qualify for the best conventional loans out there if you have a good credit score. The fact that you had a short sale will not influence your rate. Your credit score is what will influence your rate. I have seen many people 1-2 years after a short sale with credit scores in the 700s and able to get the best interest rate available.
0 votes Thank Flag Link Sun Jun 2, 2013
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.
CFS Mortgage assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.
0 votes Thank Flag Link Sun Jun 2, 2013
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