Had short sale two years ago. Credit score now 720. Have 5% down (280k home max desired). When can I get loan approval?

Asked by William J., Omaha, NE Wed Nov 13, 2013

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Scott Francis, Agent, Omaha, NE
Wed Nov 13, 2013
William,

Talk to a mortgage lender first and Google them to get reviews. Most the agents on here are just trying to get your business and if you need a mortgage question answered, go to someone that specializes in mortgages. They are the experts on this.
0 votes
bad answer
Flag Wed Nov 13, 2013
Suzan Downing, Agent, Bellevue, WA
Wed Nov 13, 2013
William,
I don't see my last post, so I am posting it again. Email or call me if you want to take this offline, otherwise, here are a couple of key questions:
1. Was the short sale due to job loss?
2. Did you move to Omaha for work?
3. Did you pay all of your other creditors on time?
4. How many late house payments did you have?
5. Has your payment history been perfect since?

With best regards,
Suzan Downing
Keller Williams Realty
suzandowning@kw.com
402-689-0121
0 votes
Annali Leach, Agent, Omaha, NE
Wed Nov 13, 2013
Contact Michele Ringsdorf -(402) 934-4281 - with Pulaski Home Lending!

She has all the answers! :)
0 votes
Michael Petr…, Mortgage Broker Or Lender, Omaha, NE
Wed Nov 13, 2013
FHA is 3 years unless you can show hardship (death of a primary wage earner or long term uninsured illness). Your credit must show good standing prior to this event.

Also, you would qualify for a FHA loan if we can show that you made your mortgage payments and any installment loan payments on time for 12 months prior to the short sale.

For conventional it is 7 years with 5% down. Four years with 10% down (you cannot have MI so we will have to do a 2nd mortgage for the 10% above the 80% loan to value on the first mortgage). Two years with 20% down.

Michael Petrovich
The Private Mortgage Group LLC
15858 West Dodge Rd Ste 100
Omaha, NE 68118
NMLS ID 463823
C: 402.305.4824
michael@theprivatemortgagegroup.com
theprivatemortgagegroup.com/michael
0 votes
Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Wed Nov 13, 2013
Hi William

To get a conventional loan, you would need to put at least 20% down to do it after just 2 years. With a 10% down payment you can be considered after 4 years. If you only have 5% down then you would have to wait 7 years.

FHA guidelines are a little less restrictive. It's 3 years from the date of the short sale, however, if you can document that the reason for the shortsale was due to a reduction income of at least 20% resulting from an "economic event" such as loss of job, extended illness, or having to take a pay cut, then this waiting period could be as soon as 1 year.

Feel free to give me a call and I can walk you through your options based on your specific circumstances.

Tony

Tony Grech | Mortgage Loan Originator | NMLS 977416
PMAC Lending Services, Inc.
Toll-free (855) 642-4762 | Fax (248) 945-4842 | Direct (248) 728-0078
tony.grech@pmac.com

Visit our website at http://www.pmaclending.com
0 votes
I would recommend dealing with a local lender.
Flag Wed Nov 13, 2013
Kelly Jourdan, Agent, Omaha, NE
Wed Nov 13, 2013
The rule for FHA mortgages is 3 years time must pass from the date of the short sale & 4 years for a conventional loan. However each lending institution can make their own decision as to whether they want to make the loan after that amount of time has past. I would suggest contacting a couple of lenders to see what they have been experiencing with clients who have gone through a short sale. Let me know if you need any lender referrals, 402.312.5420. Cheers
0 votes
Scott Francis, Agent, Omaha, NE
Wed Nov 13, 2013
Generally its 3 years if you've had a short sale. FHA may allow did you have any lates leading up to the short sale? Call Larry Alexander at Great Plains Mortgage he can beat most of the local lenders on rate and costs his number is 402-502-3599. Tell him Scott sent you.
0 votes
Suzan Downing, Agent, Bellevue, WA
Wed Nov 13, 2013
Hi William.
Hello William.
The type of loan you had will have some bearing on how soon and on what terms. Did you have an FHA or Conventional loan when you did the short sale? I just did a deal with Holly Schneidewind at Eagle Mortgage and was very impressed. The buyer had a foreclosure in the last couple of years and Holly was able to close in less than 4 weeks. She had early communication with her underwriter and that is hugely important in avoiding late notice issues or disappointment. Give her a call (her contact info is below) and please contact me (Suzan 402-689-0121) if I may have the opportunity to work for you. I am a strong negotiator and extremely competent to assist you throughout the entire process.

Suzan Downing
Keller Williams Realty
http://www.suzandowning.com
402-689-0121
suzandowning@kw.com

Holly Schneidewind
President
Eagle Mortgage Inc.
303 N 114th Street (south of Dodge)
Omaha NE 68154
off: 402-397-7180
fax: 402-397-7471
CO NMLS #2376, IND NMLS #9973
0 votes
Matthew Hover, Agent, Omaha, NE
Wed Nov 13, 2013
William, I would suggest talking to a local lender to determine if you currently qualify. Normally it is a minimum of two years until the short sale "comes off the books" so to speak.

A lender I refer much of my business to here in Omaha is Justin Pinkerton with Wintrust Mortgage. He is who I used for my current home, if that means anything to the level of trust I have in him. His direct number is 402-609-7626 and his email address is JPinkerton@WintrustMortgage.com

Hope that helps!

Matt Hover
Realtor
DEEB Realty
402-578-1425
http://www.hoversellshomes.com
0 votes
Christine Ni…, Agent, Denver, CO
Wed Nov 13, 2013
Talk to a good mortgage broker right now and see what programs you might qualify for. Pamela Todd of Megastar is my go-to lender, very knowledgeable and I believe she can write loans in Omaha. You might be able to take advantage of this small dip in interest rates. Her email is ptodd@Megastarfinancial.com, 720-891-1267. Best of luck and I hope it works out for you!
0 votes
Dennis Clark, , Omaha, NE
Wed Nov 13, 2013
William,

Under normal guidelines, you would have to wait 3 years to be eligible to obtain mortgage financing on a home unless you had a sizable down payment. However, a new program has just come out that may allow you to buy a home now under the scenario you described. There are several criteria you must meet to fit the program. If you are interested in seeing if you qualify for this program, feel free to contact me.

Dennis W Clark
Freedom Lending, LLC
NMLS#13970
402-333-5432
dennis@mortgageloansofamerica.com
0 votes
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