Karin, Home Buyer in Phoenix, AZ

We short saled a home 2 yrs ago, have 680 score. Now they changed guidelines to 3 years, what other finance options do we have.

Asked by Karin, Phoenix, AZ Fri Aug 13, 2010

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Celia Butler, Mortgage Broker Or Lender, Gilbert, AZ
Wed Aug 18, 2010
You may still be able to do an FHA loan. If you can prove that you have recovered and fulfill the compensating factors test they may allow you to move forward. I have excellent underwriting and a variety of ideas.
Celia Butler
1 vote
Robert Newton, , Scottsdale, AZ
Mon Nov 1, 2010
good luck.....you are in an area where the lenders are holding all the cards. the current climate says that after 2 years of re-establishing your self (your credit) that they will let you back in the game. this does not always prove to be true. i am finding that my lenders like a re-established customer who also has good down payment money and good job history/ future....in other words sometimes it helps if you can bring more to the table...and why wouldnt you want to? personally i am starting to see underwritters shift back to comon sense underwritting.....this will help the recovery to take hold, hopefully pushing home prices upward...which is good for everyone! way to go underwritters...
0 votes
Rudy McDowell, Mortgage Broker Or Lender, Bloomfield Hills, MI
Wed Aug 18, 2010
Hi, Karen

For FHA its 2 years. However, some Lenders may require that you still wait 3 years.
0 votes
Bryan Vasquez, Agent, SCOTTSDALE, AZ
Mon Aug 16, 2010
3 years for an FHA guaranteed loan is correct. You can get a conventional loan after 2 years however you will need 20% down.

There are a good number of investors that will do a lease purchase option. Where you are "leasing" for 1-2 years with the option to purchase at a predetermined price. In most all cases they will ask that you put some money "down" to purchase the "option". Anywhere from $1,000 to $10,000+ depending on the purchase price. There are more details and terms to be hammered out in this type of transaction however those are the basics.

Another option you may be able to explore is to have a lawyer clean your credit score. There are various services out there that will claim to "clean" your score however the most thorough that guarantee to remove all blemishes will be actual lawyers. Their fees seem to range from $1,500 to $2,500 depending how much there is to improve.

Hope this helps. If you have any other questions feel free to ask.
Best Wishes, Bryan
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