Welcome to 2019. We are another year past the financial meltdown that left many well intended people with Short Sales or Deed in Lieu on their records. New programs keep coming out that are changing the dynamics of getting a mortgage after a Foreclosure.
Portfolio Mortgages (Also sometimes referred to as Non-QM)
These are the most flexible mortgages to get after a Short Sale. Some programs do not require a wait period while others have a specific waiting period. The longer the waiting period , the less downpayment is required and rates are better as well.
Buying a Primary or Second home after Short Sale or Deed in Lieu -
- No Wait after Short Sale - There are programs with 15% down required. Your credit can be pretty beat up as well with FICOs down to 580. These programs will have higher rates, but are very flexible.
- 2 years after Short-Sale - These programs require at least 10% downpayment . Rates are a little better than the fresh start programs, but still higher than conventional.
- 4 years after Short-Sale - Programs are available with as little as 5% downpayment. Your credit needs to be pretty clean otherwise. These rates are the best and can be very competitve.
Buying an Investment Property after Short Sale or Deed in Lieu -
- 2 years after Short Sale - Mortgage programs are available with 15% downpayment. You'll need substantial reserves and be prepared for a rate that's not pretty.
Jumbo Mortages
- Either 4 or 7 Years after Short-Sale - This is the typical wait time , although it can vary.
- Not allowed - Some Jumbo investors do not allow any Short Sales in the past regardless of waiting
- No wait programs -I have detailed some of the options to get a Jumbo Mortage after Short Sale in the "Portfolio Mortages section above. These programs work for Jumbo loan amounts as well.
Conventional Loans
- 4 Years after Short-Sale - typical waiting period
- 2 Years after Short-Sale - with extenuating circumstances
FHA
- 3 Years after Short Sale - the standard waiting period after a Short Sale
- No specified wait - Manual underwriting can be done with extenuating circumstances if credit is re-established
- If the borrower had no late payments for 12 months the waiting period can be waived by the new lender
VA
- 2 Years after Short Sale - Typically the waiting period
These are the general outlines , but feel free to contact us with questions.
Craig Bosse
NMLS 1019442
(925) 322 - 0436
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