Must have a job.
Must be able to refinance out after 3 years but before 5 years (this gives you time to re-qualify for FHA).
Minimum loan amount is $90,000 at a start rate of 9.5 and up.
Minimum loan amount is $60,000 at a start rate of 15%.
Credit is looked at and will dictate your rate. However, credit will not be the reason for being turned down. We don't care about foreclosures, bankruptcy, judgments, collections, lack of credit, too much credit etc.
No down payment required if the purchase price is less than 70% of the appraised value.
Sign over date, Transfer Date (day of transfer back to the bank or sale once recorded by the county), CAVIRS Date (non-published date of when HUD may have paid any insurance claim back to the bank)
all 3 dates must be more than 3 years old for a new FHA to be approvable.
Re-Established Credit - 3 trade/credit lines estabilshed in good standing since, no lates, ect..
Unless you qualify for Extenuating circumstances,
Let me know if I can help
Senior Mortgage Consultant
Cornerstone Mortgage Group
6151 Powers Ferry Road NW
Suite 610 Atlanta GA 30339
Morgan Campbell, Mortgage Banker
FHA is generally the most lenient for borrowers with a previous short sale. In 2010, HUD issued guidance to all lenders regarding borrower eligibility for FHA loans when:
â€¢ A previously owned property was sold for less than what was owed (short sale), or
â€¢ There is a principal write down of indebtedness that cannot be re-financed into a new mortgage (short pay off).
As outlined below, borrowers are not eligible for a new FHA loan if
â€¢ They pursued a short sale on their principal residence simply to take advantage of declining market conditions, and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
Borrowers will be eligible for a new FHA loan on a short sale, if:
â€¢ The borrowers were current on the mortgage and other installment debts at the time of the short sale, and
â€¢ The proceeds of the short sale serve as payment in full.
Borrowers who were in default at the time of the previous short sale will not be eligible for a new FHA loan for 3 years (based on the date of the pre-foreclosure sale).
Should the short sale have been due to an extenuating circumstance such as death or serious illness of a primary wage earner or a job relocation, an FHA in less than 36 months might be possible.
With a Conventional (Fannie Mae/Freddie Mac) mortgage, at least 24 months must have passed since date of the short sale. The minimum down payment will be at least 20%. After 4 years have passed, the minimum down payment is 10%.
For a VA mortgage, at least 12 months must have passed since the completion of a short sale.
Regardless of the above, if the mortgage that the short sale was completed on was an FHA, USDA, or VA loan, then waiting period for a new FHA, USDA, or VA mortgage will be at least 36 months. This is due to the fact that you cannot get a government backed loan, when a claim has been paid in the last 36 months on another federally insured loan (including student loans)
Working with a knowledgeable and seasoned loan officer is critical in today's market.
Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.