We have worked with hundreds of people in the past few years who we have assisted with a short sale of their home. The most frequent question we receive from these wonderful people is, "When am I eligible for another home loan? I'm tired of renting!"One of the first steps to home ownership (besides finding a Realtor who is focused on YOUR needs) is obtaining a home loan. When it comes to purchasing a home after the foreclosure or a short sale of a previous home, there are generally standard waiting periods for each of the major home loan programs. However, new loan programs are beginning to change those standards.
1) On an FHA (Federal Housing Administration) loan, there is generally a three year waiting period after a foreclosure or short sale (though this can be reduced to one year with the new FHA "Back To Work" program). In addition, the FHA will allow you to purchase a new home just two years after the discharge of a Chapter 7 bankruptcy.
2) On a VA (Veterans Administration) home loan, the general waiting period is only two years after a foreclosure or short sale. The VA program is only available to qualified active duty Military and National Guard and veterans of the armed services. In addition, the VA will allow you to purchase a new home just two years after the discharge of a Chapter 7 Bankruptcy.
3) Finally, on a CONVENTIONAL home loan, if you have had a foreclosure, the waiting period is seven years to obtain a new conventional loan, regardless of down payment. However, after a short sale, you may obtain a new Conventional loan after two years with a 20% down payment, after four years with a 10% down payment and after seven years all restrictions are lifted, meaning you would only need a 5% down payment. In addition, on a conventional loan, you will have to wait until four years after the discharge of a chapter 7 bankruptcy to be able to obtain a new home loan.
Call us today at 602-363-8581 so that we can help you with obtaining the American dream of home ownership in the Phoenix area. Also visit our website to search for homes: www.PhoenixRealEstateForYou.com. There is no registration required on our website. Search to your heart's content! Look freely for updated listings of homes in your area of interest, then call us to discuss your needs. We can also help you find a top notch lender.We are experienced Realtors who love to help people acquire or sell their homes. We work mainly in the Southeast Valley of Phoenix: Mesa, Gilbert, Chandler, Tempe, Queen Creek, Scottsdale and Apache Junction. We offer a free market analysis of your home if you are thinking of selling.
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