Waiting Period for a New Loan After a Short Sale

Howard Dyal, President and Principal Broker, Prodigy Home Loans

We have received many questions recently from potential home buyers about how long after a short sale one must wait to qualify for a new home mortgage. The answer is…it depends.
 
There are many variables that affect your ability to qualify for a loan under the most ideal circumstances, but it becomes even more confusing after a foreclosure or short sale. To make matters worse, the rules are constantly changing. Just recently Freddie and Fannie, the government programs that purchase loans from lenders, increased the required waiting period to four years. However, in the case of a VA or FHA loan, the time period may be as little as two years.

Another factor in your ability to qualify is the situation that led to the short sale in the first place. If you were forced to relocate for a job and sell your home in a down market, lenders may be more forgiving of your situation than if the short sale was a result of fiscal irresponsibility. Lastly, if you are willing and able to make a sizeable down payment and can manage payments with a higher interest rate, you may be able to qualify in months, instead of years.

At Prodigy Home Loans, our Mortgage Loan Professionals are experts at helping you navigate the mortgage process. We have relationships with dozens of reputable lenders which allows us the greatest flexibility in finding the most desirable rates and terms for you, even if your credit is less than perfect. Call us today at 904-222-0000 for a free consultation.

 

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