FHA Loan After Short Sale 2016

FHA Loan After Short Sale 2016

A borrower whose previous residence or other real property was sold in a short sale within the previous three years is generally not eligible.

Short sale must have been resolved for at least 3 years with no late payments since the date of resolution. Minimum credit score of 500.

Borrower should have re-established credit. FHA guidelines are clear about the need for the re-establishment of positive credit from the time of the short.

If at the time of short sale your mortgage payment were current for the previous 12 months there is no waiting period.

Good rental history for the last 12 months may be required. A lender may require a Verification of Rent (VOR) from a Rental Management Company or 12 months of cancelled checks showing rental history if the landlord is a private owner.

To buy a home after short sale you must have a minimum down payment of 3.5% if your credit score is above 580. The down payment can be the borrowers own funds or can come from a gift.

Borrowers with credit scores below 580 must make a 10% down payment. 

Credit Score

New FHA policy requires a minimum credit of 500 to buy a home or refinance. In the old days FHA did not require a minimum score. These changes went in to effect in 2010.

To buy a home or refinance you will need a minimum FICO score of 500.

Borrowers with scores above 580 require a 3.5% down payment. The funds can be a gift from a family member and up to 6% seller concession is allowed.

If you have FICO scores below 580 new FHA changes require a 10% down payment. The funds can be a gift from a family member and up to 6% seller concession is allowed.

What documentation will I need?

• Personal tax returns for the past 2 years
• Current pay stubs for the past month
• Bank statements for last 2 months (all pages)
• Latest retirement statement for each active account (all pages)
• Sales contract (purchase)
• Clear copy of Driver’s License (front and back)
• Clear copy of SS card (front and back)
• Addresses and loan information of other real estate owned (if any)

FHA Loan After Short Sale 2016 Florida, FHA Loan After Short Sale 2016 Florida

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