FHA Short Sale
FHA short sale guidelines lets you qualify for a FHA loan with no waiting period if when you had the short sale the mortgage payments where not late. Correct, if you have a mortgage history with no late payments and had a short sale FHA allows you to qualify for a loan with no waiting period.
If you had a short sale and your mortgage payments were late at the time of the short sale them the waiting period is three years from the date of the short sale. FHA guidelines requires three year past from the date of sale if your mortgage was late at the time of the short sale.
FHA short sale guidelines allows borrowers with a minimum credit score of 500 qualify for a FHA loan. After a short sale, above 580 credit score and three years past the sale date FHA allows only 3.5% 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. 12 months of on time rental history or on time mortgage payment history will be required for scores below 640. If you do not have verifiable payment history 3 months of reserves will be required. Reserves must be the borrower's own funds.
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)
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