How long after short sale before I can get a mortgage
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We have lenders who will allow for people to buy after a short sale!! No longer is waiting 37 months necessary!!
FHA permits loans to borrowers whose credit history indicates a short sale, provided all of the following conditions are met:
o The borrower must have made all mortgage payments within the month due for the 12 months prior to the short sale
– Borrowers who executed a short sale after completing a permanent modification are eligible for FHA financing, provided the borrower made at least 12 payments on the permanent modification and all payments on the permanent modification were made within the month due for the 12 months prior to the short sale
Borrowers who completed a short sale on a loan that was under a temporary modification plan at the time of the short sale are ineligible for FHA financing for three years after the short sale
o The borrower must have made all installment debt payments within the month due for the 12 months prior to the short sale
o The short sale must serve as payment in full on the existing liens, and the existing mortgage servicer may not require repayment of the difference between the mortgage balance and the short payoff
o Borrowers may not execute a short sale to “take advantage of declining market conditions and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance”
o Borrowers in default on their mortgages at the time of a short sale are ineligible for FHA financing for three years after the date of the short sale unless the borrower experienced significant extenuating circumstances – Total Scorecard “approve” or “accept” response required
o Borrower(s) may not have had a previous bankruptcy or foreclosure
o For additional information, refer to the following resources:
o Borrowers having credit scores 600-639 and a short sale in the most recent three years are ineligible for FHA financing with our investor.
Minnesota First Time Home Buyer Down Payment Assistance Programs