Buying Again, Soon, After a Short Sale?

Buying Again, Soon, After a Short Sale?

Late last year I was privileged to assist a seller in the successful short sale of their home. During the process, we had a few conversations about how soon they'd be able to buy their own home again. I advised them, of course, to talk to their lender when they thought they might be ready, but we chatted a bit about a couple of programs I knew of at the time. The FHA Back-to-Work program had been recently announced and it certainly felt as though that might be their best hope for a new mortgage.

Since they just reached the 7-month anniversary of the closing of their sale, they contacted me about buying a new house. We talked a bit about qualifying and I referred them to my list of favorite loan officers. I suggested that they call and talk to each of them about possibilities, including FHA, VA, and USDA loans. I also referred them to a loan officer who had recently talked to me about a couple of less conventional sorts of programs. Loans that involved more creativity .... and that came at a higher price.

Of the four, very well respected, lenders to whom I referred them, all of them came back regretfully explaining that these clients needed to let the short sale season for another few months or years. And that they'd need to save up considerably more money to cover the needed down payment. 

However, the fifth loan officer, the one that I thought might be a bit more creative, discovered that not only could these potential buyers qualify for a VA loan, they could do so now! Seven months after a short sale, these buyers qualified and could by again without even bringing closing costs to the table. For market rate. Awesome!

I did spend time talking with the loan officer as I wanted to be sure the file was approved through underwriting. It was. Further, I learned that he can do the same program for an FHA or USDA buyer!

I'm taking them shopping this weekend!

Buying Again, Soon, After a Short Sale! It can be done!