How soon can I buy another home if I sold a home in a Short Sale?

 How soon can I buy another home if I sold a home in a Short Sale?

In a short sale, the lender approves the sale of a house to a new buyer but typically receives less than the balance owed.

This is a very good question asked to me ALL the time. There were recently changes in policy that will allow the wait time period for purchasing another home after a short sale significantly shorter:

Fannie Mae: you may be able to qualify for a mortgage in as little as two years

FHA:  in as little as a year after losing your home instead of the current three years. You will need to show that your delinquency problem was caused by a 
20 percent or greater drop in income that continued for at least six months, and that you are now back to work, paying bills on time and earning enough to qualify for a new FHA-insured mortgage.

FYI:  FOR YOUR INFORMATION ! Millions of people who have undertaken short sales in recent years may have their transactions coded as foreclosures on their credit bureau reports. Why does this matter? Because Fannie Mae and other major financing sources have mandated different waiting periods for new loans to borrowers who have completed short sales compared with borrowers who were foreclosed upon — in most cases, two years versus seven. wow!  Under the new policy in effect Nov. 16, short-sellers who find that their transactions were miscoded on credit reports and are able to put 
20 percent down, should alert their loan officers and provide transaction documentation. The loan officer should advise Fannie about the coding error. Fannie will then run the loan application through its revised automated underwriting system.

Freddie Mac: continues to require a four-year waiting period for short-sellers who cannot demonstrate “extenuating circumstances” as having caused their problems. If you can do so — documenting income reductions beyond your control that wrecked your credit — you may be able to qualify for a new Freddie Mac loan in two years.

It’s worth checking out.

If you are in a situation where you need to discuss short selling your home, please call me. I am short sale certified and everything you tell me is confidential!

If you short sold in the last two years and want to purchase again, give me a call , I can help you find the right lender