There's Never Just One Cockroach

Mortgage and Lending with Guaranteed Rate, Marin County, CA NMLS: 22343

There's Never Just One Cockroach


I mean you have to admit that as far as sayings go, the one in the subject line is just about perfect;  short, funny, edgy and all too close to home for any of us who have ever called home someplace a little less than luxe.  So it must be true that as we begin 2017, for every call I field where a prospective home buyer will say, "Well, I had a short sale a few years ago..." there are probably a hidden, greater number of those who, for whatever reason, just don't call.  And by all means, I am certainly not calling those folks cockroaches, but what I am saying is that the target of this post is that demographic in the shadows.  More specifically, it is those who require a jumbo loan, yet have had a short sale at some point over the last few years and who still harbor fears that they could not possibly be pre-approved for a mortgage now.  Dreams of home ownership and getting off the rental treadmill?  Well, they will just have to wait, right?


The table below will show you that for the most part, our best jumbo mortgage options available after a short sale are directly in line with the conventional waiting period of four years.  So that means that anyone who sold a home for less than they owed on it before the year 2013 could very well be obtaining terms today that are equivalent to Buyer B, who did not have a short sale.   And if there's more good news to report, the math is on our side too.  The vast majority of short sales occurred before 2013.


Even in cases where the short sale was very recent --- as little as one year ago --- we have options for the prospective buyer.  Let's take a quick look at the guidelines for jumbo mortgages after a short sale with all of our current investors: 


One year after a short sale:

  • $1,000,000 max loan amount with a 20% minimum down payment and a 640 minimum FICO score
  • $2,000,000 max loan amount with a 25% minimum down payment and a 660 minimum FICO score 


Two years after a short sale:

  • $2,000,000 max loan amount with a 10% minimum down payment and a 720 minimum FICO score 
  • $2,000,000 max loan amount with a 20% minimum down payment and a 640 minimum FICO score 
  • $1,000,000 max loan amount with a 20% minimum down payment and a 620 minimum FICO score 


Four years after a short sale:

  • $3,000,000 max loan amount with a 15% minimum down payment and a 680 minimum FICO score
  • $2,000,000 max loan amount with a 10% minimum down payment and a 720 minimum FICO score

So if you had a short sale at some point in your past, don't sell yourself short in 2017.  If your scenario requires a jumbo mortgage in California, we may have a solution for you and it's time to stop hiding in the shadows.


Killing myths dead, 



Robert J. Spinosa
Executive Loan Advisor
NMLS: 22343 CalBRE: 01297944
Cell: 415-367-5959 Fax: 415-366-1590 
1058 Redwood Highway, Frontage Road, Mill Valley, CA 94941


RPM Mortgage, Inc. – NMLS#9472 – Licensed by the Department of Business Oversight under the Residential Mortgage Lending Act. Equal Housing Opportunity.


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fico score
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short sale
waiting period

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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad


Gad, that's an ugly photo of a pesky critter.

But an interesting lead in to your topic. Good to know for those with short sales that depending on financials and credit there are some options in 2017.


Jan 18, 2017 04:47 PM #4
Robin Wells
RAW Chimney Sweep and Inspections - Penetanguishene, ON
Giving Peace Of Mind One Chimney At A Time

Nasty looking picture, but it did get my interest.

Jan 18, 2017 05:43 PM #5
Virginia Kazlouskas (Gregory)
Harmony Real Estate, Inc. - Hudson, NH
Your Southern NH Realtor!

Will have to see if all the same info applies to NH. Many times it can be worked out you just have to know the solution.

Jan 18, 2017 06:04 PM #6
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Great info to share, Rob.   These types of programs need to be advertised so folks who had some rough patches know they have options.  If they have a large down payment, the options are available almost immediately.

Jan 18, 2017 06:32 PM #7
Christine OShea
Christine E O'Shea Real Estate Broker - Naples, FL

Several years ago an associate got into the short sale end of real estate realizing later the folks she short sold could buy, she was smart!

Jan 18, 2017 06:34 PM #8
Kat Palmiotti
Grand Lux Realty, 914-419-0270, - Monroe, NY
The House Kat

This is definitely useful information to share for those who have had short sales and have down payment to purchase another home. Thanks for the data!

Jan 19, 2017 03:06 AM #9
Harry F. D'Elia
Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Thans for sharing your information with us today. Nice blog title

Jan 19, 2017 03:42 AM #10
Ted Glover
Alderman Classic Realty, LLC - Moultrie, GA
ABR in Moultrie, Georgia 229-854-5422

Nice catch phrase,  I was expecting a horror story along those lines. But got good information to check out to see if it is  similar to Georgia's loan requirements. Thanks 


Jan 19, 2017 04:22 AM #11
Shirley Coomer
Keller Williams Realty Sonoran Living - Phoenix, AZ
Realtor, Keller Williams Realty, Phoenix Az

Nice title.  I wasn't sure if I wanted to read it or pass on by!  Glad I decided to read it!  Great information to share with buyers looking to buy but unsure of options. Lending programs and requirements are always changing!

Jan 19, 2017 05:50 AM #12
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

On roaches, if you can see one, you can bet there are thousands more. On short sale and all the rest, it becomes par for the Real Estate course over time

Jan 19, 2017 06:46 AM #13
Carol Lynn Johnson
Re/Max Elite Realty - Franklin, NC
Residential Specialist

I'm glad I read your post.  Good to know.  Amazing how short lived a short sale is when it comes to credit.

Jan 19, 2017 07:10 AM #14
Nick & Trudy Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtors, Philly Main Line

I know looking back when we moved to the States we had some financial hiccups and rented for way to long before we felt we were able to move back to being a buyer again. People hate to be refused and also forget, if one lender cannot help, it is worth looking around because another lender may be able to help them.

Jan 19, 2017 07:58 AM #15
Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Rockledge, FL
... a small office, delivering big service!

Your subject line lead me to believe this was an article about politicians!

Jan 19, 2017 08:27 AM #16
Mike Bjork
American Pacific Mortgage - Redondo Beach, CA

Great job getting the info out to those Boomerang Buyers, Rob!  You're right, many still don't understand that there are loans to assist those types of situations.  But the caveat will be to expect a little stricter terms and conditions, along with higher prices.  Thanks for the post!

Jan 19, 2017 09:25 AM #17
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Area Real Estate

Great post as many people think they are stuck forever after any type of credit bump.

Jan 19, 2017 02:29 PM #18
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Rob, this is music to my ears ... and my clients know they are not bound to the regions of hell forever following a short sale.  Many of them are now back in the market looking to buy another home. 

Jan 19, 2017 03:41 PM #19
Patricia Feager
Selling Homes Changing Lives

Rob Spinosa - I must confess, every time I logged on to ActiveRain and saw that roach I just couldn't open up your post to read it. So then curiosity got the best of me and I read it. It's a great blog post on a topic many Agents need to know and consumers too! I am very happy I had the courage to get beyond the title and read some very valuable information. You deserve the feature!!!

Jan 19, 2017 06:47 PM #20
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH

Thanks for sharing!!!

Even in cases where the short sale was very recent --- as little as one year ago --- we have options for the prospective buyer.

Jan 20, 2017 04:24 AM #21
Pat Starnes, Brandon, MS
Front Gate Real Estate - Brandon, MS
Broker Associate, ABR, 601-278-4513

Ewww, you know how to capture our attention. I couldn't WAIT to scroll past the cockroach to read how you tied that gross bug into a blog post. You are doing a fantastic job of killing myths! Star well deserved.

Jan 20, 2017 06:49 PM #22
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Rob,

This problem sounds like a nice one to have. We have few homes in that price range, except some neighborhoods. Good to know though. Maybe this year, I will have someone like that.

Jan 22, 2017 06:41 PM #23
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Rob Spinosa

Vice President of Mortgage Lending, Marin County
Can I Get a Jumbo Loan with 10% Down?
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