In today's environment (February 2011), can one purchase a home with 10% down, credit score of 740, >$200K income, and a short sale in 2009?

Asked by Donsfan, Oakland, CA Sat Feb 19, 2011

We sold our home via short sale back in 2009 not due to financial reasons but because of impact to our child's health.

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11
Dianne Y. A…, Mortgage Broker Or Lender, San Antonio, TX
Sun Mar 6, 2011
Donsfan,

According to Mortgagee Letter 09-52, there are two scenarios to consider: Borrowers Current at the Time of Short Sale, and Borrowers in Default at time of Short Sale. If you were current at the time of the short sale, and all of your mortgage payments were made on time 12-months prior to the short sale, then you are eligible for a new FHA-insured mortgage. In the 2nd scenario, you would have to wait three years from the date of the short sale.

However, since the default was due to “circumstances beyond your control”, such as your child’s illness, then, the lender may make an exception to this rule. You will also have to show that your credit was satisfactory prior to your child’s illness.

I hope that this information is helpful, and that your child has recovered. All the best!

Sincerely,

Dianne Y. Ayala Steffey, MBA, CLU, ChFC, NMLS #267658
Sterling Mortgage Services NMLS #373771
2929 Mossrock, Ste 222
San Antonio, TX 78230
210.349.2102
210.349.1544 fax
210.831.8749 cell
http://www.sterlingloans.biz
0 votes
Larry Benede…, , Oakland, CA
Sun Mar 6, 2011
what did the bank tell you the waiting time was?
0 votes
Rudi Hofmann, Mortgage Broker Or Lender, El Segundo, CA
Mon Feb 21, 2011
Did you have any late mortgage payments in the prior 12 months of the HUD-1 dateof short sale?

Happy funding, Rudi
Web Reference:  http://www.umboc.com
0 votes
Gilbert Rich…, , Santa Clara County, CA
Sun Feb 20, 2011
Depends on the month. You need to have a 24 month minimum and that is only if you had a short sale and the property was not in a foreclosure situation
0 votes
allan erps,A…, Agent, Pearl River, NY
Sun Feb 20, 2011
Hello, Realistic purchase price(consult Mortgage Broker) and I as well think the answer is YES! Hope your child i well!
0 votes
Pacita Dimac…, Agent, Oakland, CA
Sat Feb 19, 2011
Several short sale educators/lecturers say that it can take 18-24 months from the sale of a short sale property before one can qualify to buy another home provided the borrower has worked very hard in repairing his credit. Sounds like you've been doing that, based on your 740 score.

The first thing you should do is speak with a mortgage lender who would have the latest guidelines on prequalifying/preapproving people based on their credit history, income, etc. If the lender believes you can qualify for a loan, in spite of your short sale 2 years ago, then good for you.

But don't start looking at houses until you are preapproved. For the most part, that advice holds true to anyone who is buying property and who needs to take out a loan.

Good luck...maybe this time, things will work out better for you and your family.
0 votes
Troystaten, Agent, Alameda, CA
Sat Feb 19, 2011
Talk to a mortgage broker, you maybe able to do so. Your probably looking at an FHA loan.

Good luck and let us know what a mortgage broker says.
Web Reference:  http://www.troystaten.com
0 votes
Bud Zeller, Agent, Folsom, CA
Sat Feb 19, 2011
Consult and explain this with at least 2 experienced lenders + 2 experienced realtors in your area!
Evaluate their opinions and come to a rational decision.
Web Reference:  http://sierraproperties.com
0 votes
Bill & Elijah…, Agent, Oakland, CA
Sat Feb 19, 2011
The answer is maybe. I've been told that in most cases its a four year wait but in certain circumstances FHA might only require a year's wait. Call for more info if you'd like .
Web Reference:  http://billfletcherhomes.com
0 votes
Dianne Langs…, , California
Sat Feb 19, 2011
I believe you can. How much of a loan are you attempting to get? Is income stable?
0 votes
Isi Wu, Agent, Alameda, CA
Sat Feb 19, 2011
Hello... As you must know the current market is not exactly a wonderful one to be in... one would think its very much to the advantage of the buyers to be able to buy lower than ever before... because of all the challenges in the lending process these days and because of all of its ever changing requirements it can be a huge headache to maneuver through... I suggest that you connect up with a realtor who has some years of experience to counsel and guide you through what can and cannot be done... Good Luck to you... Isi
Web Reference:  http://www.isiwu.com
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