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First time home buyer after short sale

first time home buyer after short sale You will want to include dates to help the lender establish a timeline.

  • Note that the lender will need to find out more information on the property address that was sold in a short sale.
  • Was your prior short sale a strategic default?

    A strategic default is when you sold your home to take advantage of the housing market’s past decline and purchased another similar or better house at a reduced price, which is within commuting distance to the house you previously sold. If the short sale of your home was a strategic default then you would have to wait 7 years to qualify for a loan to buy a home again.

    Buying a House with FHA loan after a Strategic Default Short Sale

    If you did a strategic default as defined above on your primary residence: you may not qualify for a 3.

    first time home buyer after short sale Are foreclosures for first time home buyers? - Trulia Voices

  • Receive homeownership counseling or a combination of homeownership education and counseling provided that each participant receives, at a minimum, one hour of one-on-one counseling from HUD-approved housing counseling agencies. A list of agencies can be obtained online at http://www.hud.gov or calling: 1-800-569-4287. This is required to be completed 30 days before applying for a loan using FHA’s back to work program.
  • If you are are serious and absolutely ready to take the step of getting a pre-approval before shopping for a home, below you will find the typical documentation that the lender will ask from you:

    • 2014 and 2015 Federal Tax Returns 1040’s (All Schedules)
    • 2014 and 2015 W2s
    • 2013 tax returns if you have them to help the lender look at how your income was before the hardship started
    • One month’s most recent paystubs
    • Most recent two months’ worth of bank statements to show where the down payment/closing costs are coming from (all pages even blank ones in a set)
    • Letter with details of the circumstances of the i.
    On top of that, today’s mortgage interest rates are low. But short sales are complex and can take a lot of time.

    Short sales are complicated because the final price must be approved by the both the home seller and the seller’s lender. So short sales require extra time to move from an offer to a settlement — sometimes as long as six to nine months.

    “In general, first-time homebuyers should definitely consider short sales because they offer a terrific opportunity to get a great house at a discounted price,” says Paul McDonough, a Realtor with Weichert Realtors in Randolph, N.J. “The only drawback is timing because some banks are still notoriously slow at approving an offer. Buyers who need to move within a specific timeline because their lease is expiring or a school schedule may not want to make an offer on a short sale.”

    According to CoreLogic, short sales represent about 8 percent of all home sales in 2011.

    First-time buyers and successful short sales

    Christina Griffin, a sales associate with Coldwell Banker Residential Real Estate in Tampa, Fla.

    With Fannie/Freddie Loans, you will have to wait 4 years if you only have 10% down payment or possibly wait just 2 years if you have extenuating circumstances that lead to the short sale of your home.

    Buying a House with a Conventional Loan TWO years after a short sale with 10% down payment and extenuating circumstance

    You may be able to buy a house 2 years after a short sale with 10% downpayment if you can document and verify acceptable extenuating circumstances prior to your short sale. Examples of extenuating circumstances are one time events beyond your control that cause a significant and prolonged reduction in income or a catastrophic increase in your financial obligations.

    300,000 and may require a credit score of 680 with 12 months of payments cash reserves. Please fill out the contact information to receive more information from the lenders we work with.

    Buying a house after a short sale with 30% down payment a day after a short sale with strict conditions

    With 30% downpayment as the buyer’s skin in the game so to speak, some lender/investors are willing to finance your purchase of a home right after a short sale with credit and income guidelines including acceptable documentation of your recent short sale event. The interest rates on loans right after a short sale with hardly any waiting period are typically higher (for example 4.

    However, there are loan options below that allow you to buy sooner if you meet certain eligibility guidelines. Please scroll down to watch the videos we created to help you learn more about the process of getting a home loan after a short sale, foreclosure, or bankruptcy.

    Here are your loan options to buy a house after a short sale

    Buying a House with an FHA Back to Work Program one year after a short sale with 3.5% down payment

    Did you know? FHA announced on August 15, 2013 that you may only need to wait one year to be able to buy again under the FHA’s Back to Work Program. FHA is willing to back loans for borrowers with as little as 3.

    You must also document an acceptable hardship that led to the short sale such as unemployment, large medical bills not covered by insurance. Please send us a message by filling out the contact request form below to learn more information from the lenders that we work with.

    Buying a house after a short sale with 25% to 30% down payment just one year after a short sale

    If you do not qualify for the FHA back to work program with 1 year wait after a short sale and you have saved 25% to 30% down payment, there are lenders willing to finance your home purchase with just 1 year waiting period after a short sale. The applicable interest rates are higher on loans with a 25% downpayment compared to a 30% downpayment loan.


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