How soon can I buy again after a short sale?
February 9, 2012 by admin · Leave a Comment
“How soon can I buy again after a short sale?”
“How long do I have to wait?”
As an agent who works with short sales every day, I am asked this question all the time.
The information below is current as of February 2012. I will update our Battiata.com blog as any of these guidelines change.
NOTE:
The waiting periods below do NOT apply when applying for a non government insured loan, or when the derogatory item has been deleted from the borrower’s credit report (i.e. Short sale or missed payments deleted). We see borrowers who have repaired their credit or are borrowing from a credit union etc buying within six (6) months to a year after a short sale.
For more information, go to the websites of Fannie Mae , HUD and Freddie Mac .
2012 Conventional Waiting Guidelines (Fannie Mae)
Short Sale / Deed in Lieu of Foreclosure –
TWO (2) Years up to Maximum 80% Loan to Value | 20% Down Payment
FOUR (4) Years up to Maximum 90% Loan to Value | 10% Down Payment – Subject to Private Mortgage Insurance underwriting guidelines.
SEVEN (7) Years above 90% Loan to Value | with less than 10% Down Payment – Subject to Private Mortgage Insurance underwriting guidelines.
Bankruptcy
FOUR (4) years after your bankruptcy has been discharged.
Foreclosure
SEVEN (7) years after the sale date of your foreclosure.
FICO score requirement is 660 or higher
Fannie Mae has reduced waiting periods in cases of extenuating circumstances. Extenuating circumstances include:
Death
Illness
Job Transfer
Accident resulting in severe injury
2012 FHA Waiting Guidelines
Short Sale with late payments – You may apply for a FHA insured loan THREE (3) years after your short sale closes escrow.
Short Sale with no late payments – No Waiting Period.
Bankruptcy Ch 7 – You may apply for a FHA insured loan TWO (2) years after your Chapter 7 Bankruptcy has been discharged.
Bankruptcy Ch 13 – You may apply for a FHA insured loan ONE (1) year after your Chapter 13 Bankruptcy has been discharged.
Foreclosure – You may apply for a FHA insured loan THREE (3) years after your home has gone to foreclosure.
FICO score requirement is 640 or higher
2012 VA Waiting Guidelines
Short Sale with late payments – You may apply for a VA loan TWO (2) years after a short sale (unless your short sale was on a VA loan in which case restrictions apply).
Short Sale with no late payments – No Waiting Period.
Bankruptcy – You may apply for a VA loan TWO (2) years after a Bankruptcy.
Foreclosure – You may apply for a VA loan TWO (2) years after a foreclosure.
FICO score requirement is 620 or higher.
