Home Buying in Buena Park>Question Details

kyn, Home Buyer in Buena Park, CA

i had a short sale in feb 2010, can i buy again with a conventional loan? My mid-fico is 733 and my income is documented and have no debt.

Asked by kyn, Buena Park, CA Fri Oct 5, 2012

fyi the second from my short sale is showing as a charge-off but we refi-ed for a better rate no cash out.

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Kyn, a minimum of 2 years is what is required on a short sale where there were late payments leading up to the short sale. You'll need 20% down, but if the short sale was due to documented extenuating circumstances (medical situation, an accident, death of a wage earner, etc.) then 10% down is permitted. At 4 years then 10% down is permitted no matter the reason for the short sale, extenuating or not. At 7 years then maximum financing is available (which currently requires 3% down).

Those are conforming loan guidelines, which is the primary type of conventional loan/what you see & hear advertised on TV & the radio.

FHA normally requires 3 years from the short sale, but can be OK with just 1 day afterwards if the mortgage payments were made on time within the 12 months prior to the short sale & you aren't looking to take advantage of declining market by purchasing a similar or larger home in the same area as you short sold. Since you were late on the payments leading up to the short sale you'll be looking at a 3-year wait for FHA financing.

Shane Milne | Lending in all 50 states | NMLS #81195
1 vote Thank Flag Link Sat Oct 6, 2012
We had late payments but only for a few months to qualify for the short-sale. At that time, banks were not approving ss without being late. Other than the mortgages, we had no other negative credit reporting EVER! We had to ss due to a layoff, but have been gainfully employed in the same industry for 20+ years.
0 votes Thank Flag Link Sat Oct 6, 2012
This is more of a question for an experienced loan officer. There are variables, were there late payments prior to the short sale, was the short sale due to a work relocation. I have been told 2 years FHA and 3 years conventional. However I don't think anyone is going to be able to honestly answer your question online. Consult the financial institute of your choice.
0 votes Thank Flag Link Sat Oct 6, 2012
In my particular area the waiting period is 3 years so in February of 2013 you should be good to go given the information posted + additional employment data.
0 votes Thank Flag Link Sat Oct 6, 2012
For a personalized answer, it's really in your best interest to consult with any licensed loan officer; don't just rely on online information....
0 votes Thank Flag Link Sat Oct 6, 2012
Yes, I had a client with the same situation, and the lady that helps qualify my buyers was able to get my client an FHA loan.
0 votes Thank Flag Link Fri Oct 5, 2012
Is an FHA loan the only loan available? We have 20%+ down as well. I'm not too well versed with FHA, are there many costs and restrictions involved with a FHA loan?
Flag Sat Oct 6, 2012
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