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How-To Get A Loan After A Short Sale Or Foreclosure

By
Real Estate Agent with Renaissance Realty Group of Keller Williams Atlanta Partners

How-To Get A Loan After A Short Sale Or Foreclosure

Can it really be done can I get a Home Loan after a Short Sale / Foreclosure .. it will take a little time and a little work but yes you can. By far the easiest mortgage to obtain is a FHA loan:

Ok tell me how .

1) 3.5 percent down payment, based on the purchase price of the home (e.g., $7,000 on a $200,000 home), or a gift of that same amount;

2) 3 percent to 6 percent of the purchase price, on top of the down payment, for closing costs, or a credit from the seller of the same amount; and

3) 640 FICO credit score — the middle score of those generated by the three credit bureaus (some banks will lend to borrowers with middle scores lower than 640, but will require more than the minimum down payment).

Lenders will want you to document income, asset and job history documentation, current paycheck stubs, two months’ bank statements and two years of W-2 forms or tax returns, and:

  • a minimum of two years have passed since the discharge of a bankruptcy;
  • a minimum of three years have passed since a foreclosure;
  • anywhere from zero to three years have passed since a short sale, depending on the circumstances surrounding the short sale.

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If you or someone you know is thinking of buying or selling a home have them give me a call .. we will get it done ...right 

Eric Reid 

Associate Broker

Keller Williams Atlatna Partners
Team Leader 
Renaissance Realty Group

Comments(2)

Carmela Jacobs
Carmela Realty - Westlake Village, CA
Ventura Co., Los Angeles Co., CA, & Global Realtor

In the end it's on a case by case basis depending on the lender.  Thanks for sharing and good luck getting your clients qualified.

Have a great day!

Carmela

Apr 07, 2011 06:42 AM
Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA
AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,NV,SC,TN,TX,VA,WA

FHA is by far the easiest.  The only real way to buy in less than 3 years after a short sale is if they were not late on the previous mortgage at the time the short sale was completed.  Since most sellers are late, very few will fall into the less than 3 year category.

Apr 09, 2011 02:33 AM