Loans After A Short Sale!!!
Lenders are easing the guidelines for borrower’s that have faced, or are facing, a short sale. This is great news for homeowners that find themselves unable to afford their current payments, but don’t want to sit on the sidelines for 3 to 7 years to buy another home.
FHA’s guidelines state;
When a previously owned property was sold for less than what was owed (short sale), borrowers are considered eligible for a FHA insured mortgage if, as of the loan application date, all mortgage and installment debt payments were made within the month due for the twelve months preceding the short sale.
Conventional guidelines allow for the follow ing extenuating circumstances;
- At least two (2) years must have elaspsed since completion date of the Short Sale
- The borrower(s) may purchase a property secured by a primary residence, second home, or investment property with the greater of ten percent minimum down payment or the minimum down payment required for the transaction
Although many Short Sale sellers don’t fit into either scenerio, it is hopefully a sign of things to come. It also shows that there can be life after a short sale. Please don’t hesitate to call if you, or anyone you know, might qualify for one of these programs.