By Jennifer Srock
How long must buyers wait before obtaining mortgage financing after a short sale?
Keep in mind, extenuating circumstances may apply to your situation. You always need to discuss your specific circumstances with your mortgage lender. I always recommend Arizona buyers contact Senior Loan Officer, Cheryl Barber at 520-560-2109 for a free consultation on qualifying for a mortgage loan. Her background in financial services and mortgage lending since the early 1980’s along with her good natured personality is a guarantee you have someone that will not only give you the harsh reality, if need be, she always has your best interest in mind. She has proved that to me through my clients and family since I gave her a chance in 2006.
So, here are the facts:
On a conventional loan – 4 years with a 90% maximum loan to value. 7 years with a maximum loan to value allowed by the conventional loan program. With extenuating circumstances, you may eligible for reduced seasoning time of 4 years and a 90% loan to value so long as you have re-established credit for 2 years and provide a letter of explanation and documentation evidencing the incident was not due to a financial mismanagement. Acceptable situations include:
- Death of primary wage earner
- Long-term illness or disability not covered by insurance
- Prolonged loss of employment for reasons beyond the borrower’s control (such as closing mergers)
On an FHA loan – 3 years from completion date.
On a USDA Rural loan – 3 years from completion date so long as borrower has a 640 or higher credit score a lesser wait period may be acceptable.
On a VA loan – 3 years from completion date.
Contact Senior Loan Officer, Cheryl Barber, at 520-560-2109 for a free consultation on qualifying for a mortgage loan.