Short Sale

Short Sale - Waiting period to qualify for a mortgage:

• FHA 3 years - FHA requires a minimum of three years from the date of sale
  
• Fannie Mae 7 years - Fannie Mae requires a minimum of seven years from the date of sale
• Freddie Mac 7 years - Freddie Mac requires a minimum of seven years from the date of sale
• VA 3 years - VA requires a minimum of three years from the date of sale

FHA allows you to purchase a home or refinance after 3 years.

FHA guidelines 2016 minimum credit score is 500. In the old days FHA did not require a minimum score. These changes went in to effect in 2010.

To buy a home after a short sale FHA requires 3 years past since the date of the sale.

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 payment 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. 12 months of on time rental history or on time mortgage payment history will be required. If you do not have verifiable payment history 3 months of reserves will be required. Reserves must be the borrower's own funds.

Most lenders require a minimum FICO score of 640 for a FHA loan.

We don't. FHA requires a minimum credit score of 500.

Whether you're planing to buy a home or need to get pre-approved for a mortgage. A perfect FICO score is not needed for an FHA loan approval.

In fact, even if you have had credit problems, such as a short sale or bankruptcy, it's easier for you to qualify for an FHA loan than a for a conventional loan. Scores down to 500 are accepted if there are compensating factors that offset the credit risk.

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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We look forward to working with you.

We look forward to working with you.