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Can you Get A Mortgage After Short Sale (Or Foreclosure)?

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

Given today’s guidelines what are the absolute bare-minimums to obtain a mortgage?

….and perhaps more interesting…how to obtain a mortgage immediately after a Short Sale..read on…

By far the easiest mortgage to obtain is a FHA loan:

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.
So yes you can buy again - and maybe sooner then you think - one key is  learly starting a short sale early ( fewer defaults on the credit report) will help.

Call today if your facing foreclosure or are upside down and need to sell. 

Posted by

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)

Goran Utvic
Goran Utvic Real Estate Broker/Construction Consultant - Chicago, IL
Chicago 2 Flat Specialist

Great post Eric...good point, the sooner a homeowner starts the short sale process the less it affects their credit.

May 16, 2011 10:58 AM
Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA

FHA definitely has the shortest time line to be able to purchase again. 

May 16, 2011 03:17 PM