I have a short sale 18 months ago when can I buy a home my credit is 730 I have money for 40 percent down tank you for your help

Asked by rubenslgdo, Menifee, CA Fri Jul 19, 2013

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Thierry Abel, Mortgage Broker Or Lender, Corte Madera, CA
Wed Jul 16, 2014

We have a program for Borrowers one year out from a major derogatory such as Foreclosure, Short Sale, and Bankruptcy which was caused by loss of income due to the economic recession.


For borrowers who had credit issues caused by the recession that were the result of either: Documented 6 months of unemployment that resulted in 20% reduction in Household income or
Documented 20% reduction of Household income for 6 consecutive months or
A combination unemployment or reduction of Household income lasting 6 months or more and resulting in 20% monthly reduction in Household income.

Eligible Events
Loss of job, cut in pay or reduction in work hours resulting in pay cut
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Craig Bosse, Agent, Walnut Creek, CA
Thu May 15, 2014
You can buy again right away with our "2nd Chance" portfolio loan. There's no waiting period after Short-Sale or Foreclosure as long as you've only had one on your record. You have plenty of downpayment, we only require 20% and a 660 minimum mid FICO.

This loan is available from $50k-4 million and in AZ, CA, CO, DC, FL, HI, IL, MD, MT, NV, NJ, NY, NC, OR, SC, VA, and WA
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Alexander Gr…, Agent, San Jose, CA
Mon Aug 5, 2013
We can certainly help you out. You can check us out at http://www.TheMortgageOutlet.com and give us a call. One of our loan officers will look at your situation and present you with some options.
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Kevin and Ju…, Agent, Wildomar, CA
Thu Aug 1, 2013
Hard money loan is an option - you will typically have a prepayment penalty for the first 3-6 months, but then you could refinance (assuming you qualify at that time).

Good luck!
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Scott Godzyk, Agent, Manchester, NH
Wed Jul 31, 2013
You are getting a lot of conflicting answers. The ONLY true answer will come by you meeting with a local and trusted loan officer who can review your credit, financials and most important how they reported your short sale on your credit and what happened to "shorted amount" left over after the short sale.
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Susan Vander…, Agent, Lake Elsinore, CA
Wed Jul 31, 2013
40% makes it sound like you are in a good position to buy. Are you talking about Menifee prices? Perhaps the 40% (in dollars) could allow you to buy in cash in another area?

Do you have any reserves? Reserves are typically 6 months of the expected mortgage amount that you have in your account. Some lenders require the reserves to be "seasoned" meaning the money has been in your account for at least 3 months to 1 year.
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Rhonda Brink…, Agent, Las Vegas, NV
Mon Jul 22, 2013
at 730 and 40 % down, you should be able to purchase now, depending on your debt to ratio. Please call or email me and I can help you get started. You may be surprised. And interest rates are so good right now , you should try no matter what. You can reach me at Rhondasellsvegas@gmail.com and my web site is http://www.AllLasVegasHomes.Com
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Bill and Lin…, Agent, Murrieta, CA
Fri Jul 19, 2013
You might consider a purchase option. You may be able to dial in a price in a rising market.
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Elva Wormley, Mortgage Broker Or Lender, San Jose, CA
Fri Jul 19, 2013
Hi Ruben,

Right now, your only option is a hard money loan, however, if you do decide to go that route, you can always refinance. Just make sure the loan does not have a pre-payment penalty.

Otherwise, I would wait for six more months.

Best regards,

Elva Wormley
Mortgage Consultant
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
(408) 615-8500
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Lon Mapes, Agent, Redlands, CA
Fri Jul 19, 2013
Jory is right, even though you have a great credit score and plenty of money to put down you'll still need to wait another 6 months. Unless, you were able to find a hard money lender.
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Brad Yzermans, Mortgage Broker Or Lender, Murrieta, CA
Fri Jul 19, 2013
You could possibly buy today if you didn't have any late payments on the mortgage or any credit lines leading up to the short sale.

I recently got one borrower approved using their VA eligibility and $0 down payment just 14 months after they did their short sale.

Conventional financing (Fannie Mae) allows borrowers to buy as soon as 24 months after their short sale with a 20% down payment.....not sooner. Be careful though, you would be surprised at how many banks don not report the correct 'code' to the credit bureaus that prevents them from receiving an automated DU approval, which then requires a manual underwrite, which only a small handful of lenders will do or need to get that code corrected....which is no easy task.

It's best to get all this squared away now rather than wait.....call me if you want....I'm in Temecula.

You can read the updated guidelines and waiting periods of when you can qualify and buy again after short sale in California in the link below.
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Thank you for the detailed response. Too many people hear a NO when they may in fact be able too. We need good lenders like you around more!
Flag Fri Jul 19, 2013
Valli Lopez, Agent, San Diego, CA
Fri Jul 19, 2013
If you can prove that you had a job relocation, previously were in an unsafe neighborhood, your children switched schools, or you had a divorce and had to short sale, then you could buy again now. You would have to PROVE some kind of extreme circumstance. It could not be that you just couldn't afford the payments. ESPECIALLY, if you weren't late on your mortgage at all up to the short sale, you would definitely be able to buy now regardless of the circumstance. Your credit score leads me to believe you may not have had any lates on your mortgage prior to the short sale.

If you are ready, call me. I will be showing homes in Canyon Lake and Temecula this weekend and would love to show you around and meet you. A few agents might reply and contradict what I am saying here, but I urge you to call me so I can show you I am right.

Valli Lopez
619.916.9595 cell
NMLS 980530
Web Reference:  http://www.ValliLopez.com
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Claudia Mull…, Mortgage Broker Or Lender, Fremont, CA
Fri Jul 19, 2013
you must wait 24 months from the day of the short sale to the day of your application.
no exceptions. cg
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Jory Blake, Agent, Norco, CA
Fri Jul 19, 2013
Hi Ruben, you are about 6 months away. I would certainly get plugged in with your lender , review your credit,ratios and costs and be in a position to buy come January.

Jory Blake
Riverside County Home Sales
Web Reference:  http://www.JoryBlake.com
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