Saturday, June 28, 2014

Buying After a Short Sale in California

Photo Credit: Website Builder
Good News! Changes in lenders' guidelines have reduced the waiting period for buyers who wish to purchase a home after experiencing a short sale. Maintaining good credit since, paying all bills on time in the last 12 months, saving a down payment (as little as 3.50% to 20% down payment), and of course, having income to qualify for a loan make it possible to buy a house in as little as 12  to 36 months.

FHA announced on August 15, 2013 that the wait period will be reduced to one year under FHA's Back to Work Program. Borrowers with as little as 3.50% down payment after having a short sale, bankruptcy, or foreclosure can apply. This is subject to guidelines such as having experienced an Economic Event which is beyond your control that resulted in a Loss of Employment or Loss of Income. Note: If you were delinquent on a prior FHA loan, you will not be able to buy after one year with this FHA program.
Conventional financing will allow a home purchase after two years with a 20% down payment .  Only have 10% down payment?  The wait time is 4 years.
Veterans can apply for 100% financing with a VA loan after a short sale with a 2 year wait period.. Other factors may apply so check with your local mortgage professional for all the details and then begin on the road to home ownership again.

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