Yes that's correct folks! You can now SHORTSALE your home and BUY another home right away! How you ask? Well follow these guidelines:
*You must have a FICO score of at least 640
*You must be current on your mortgage payments, NO LATES
*You must have purchased the home you are shortselling with a conventional loan or other loan,not an FHA loan. Since the SHORT SELL AND BUY PROGRAM allows you to purchase a home with an FHA loan.
*You cannot purchase a superior home. For example: If you bought the home you are shortselling for $700,000, the home you can NOW PURCHASE must be LESS than the original purchase price of the home you are shortselling. That's awesome because most homes are worth less now that what they were in the bubble anyway.
*You must purchase usually within a distance of over 30 miles. For Example: Can't shortsell a home in Redondo Beach and purchase another in Redondo Beach. Must be a over a commutable distance, usually over 30 miles away. *Exceptions are if your family size changed or due to job reasons or medical,or court ordered divorce, etc. Must be a good believable reason so there are EXCEPTIONS to this rule.
* GIFTS are acceptable as downpayments, your downpayment does not have to come from you. Can come from Mom or Dad or a friend, does not have to be a relative or blood related. SOOOO if you don't have the money for a downpayment, someone can help you out.
*Short Payoff(Short Sale) must serve as payment in full.
*No prior bankruptcies or foreclosures allowed on your record.
*3.5% MINIMUM downpayment allowed- can also put up to 20% or more down if you wish.
This is an excellent FHA loan program offering hope to many homeowners in California especially Los Angeles and Orange Counties. You can shop for your home while you are in escrow with your short saled home and almost close concurrently.
Tons of homeowners are taking advantage of this new program. I would hurry before they change the rules or the program.
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