In the 25+ years we've been in business we've helped many, many people buy a home despite recent short sale, foreclosure, bankruptcy, property condition, etc.
Just thought I'd let you know about this type of loan program too.
Owner/Realtor - Flipper Chick
The timeline is not the only factor, even if you are past the timeline if the lender canâ€™t get a CAIVRS number they canâ€™t get the next loan insured by FHA. If FHA is the one that took the last hit they may be a little slow next time. None of this takes place in a vacuum.
Whatever you decide is the most probable timeline, if you double that in your plan it will keep you safe, good luck,
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Generally speaking, following a short sale you will need to wait 2 years for a conventional loan (not government insured such as FHA) with a minimum 20% down payment.
For an FHA loan, you typically need to wait 3 years...and for these you can currently purchase with as little as a 3.5% down payment.
Depending on your specific situation and the details of your short sale, there may be additional options. I'd suggest that you discuss your specifics with a qualified loan consultant.
If I can help in any way, please do not hestitate to contact me.
FHA financing normally requires THREE years from the short sale; HOWEVER, IF:
1) The mortgage payments were made on time within the 12 months prior to the short sale, and
2) The Buyer is not looking to purchasing a similar or larger home in the same area as short sale; one can actually buy the very NEXT DAY after escrow closes on your Short Sale.
Be sure to have your Mortgage Broker/Banker confirm current guidelines when you want to move forward.
In addition, on 8/15/13 HUD/FHA released Mortgagee Letter 2013-26 which introduces the definition of an "Economic Event" which may allow purchasing within 12 months of a distressed property transfer.
Conforming loan guidelines state a minimum of TWO years and 20% down; however, if the short sale was due to documentable "extenuating circumstances" (divorce, medical, job loss, death of a wage earner, etc.) then you only need 10% down.
Extenuating Circumstances "are nonrecurring events beyond the borrowerâ€™s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations."
In order to understand your options for purchasing make sure to obtain a "True Pre-Approval" which you can read about here: http://www.Steven-Anthony.com/GettingStarted
You might also be interested in "Retail Banks vs. Mortgage Broker/Bankers"
If you would like a referral to a Mortgage Broker/Banker please contact me offline.
Talk to a reputable local lender as soon as you can. They can give you the information that applies to your particular case. No answer here is going to be one size fits all, but there is hope and it is getting better all the time.
If you would like a referral for a lender please give me a call.
Best of luck,