Buying a House after a Short Sale

Buying a House After Fannie Mae Loan Freddie Mac Loan FHA Loan VA Loan USDA Rural Loan Jumbo Loans
Short Sale 2 Years with max 80% LTV ratio
4 Years with max 90% LTV ratio
7 Years – LTV per eligibility chart		 4 Years from completion date 3 Years from completion date 

*Per FHA ML 09-52, FHA financing can be obtained in less than 3 years under certain conditions.*

 2 years from completion date

If not mortgage lates in the 12 months leading up to the short sale, a VA Loan may be obtained in less than 2 years.

 3 Years from completion date 5-7 Years from completion date

 

* JUMBO waiting periods vary by lender     * Waiting period time frames may be less in situations with extenuating circumstance
* For LTV’s greater than 80% – mortgage insurance guidelines may differ
Special Note LTV = Loan to Home Value Ratio

Your short sale was a long and drawn out process, but with the right preparation during your waiting period, buying a house after a short sale doesn’t need to be. You can make this next step easier and less stressful by working with a knowledgeable and experienced mortgage professional to reposition yourself and be mortgage ready.

The chart above illustrates the complexity of mortgage lending today and just a few of the many conditions that can determine which may be the best direction for you to focus on when buying a house after a short sale. The waiting period can vary and be dependent upon such factors as the loan size, amount of the down payment, and specific guidelines to each mortgage program. An important first step that can be achieved during your waiting period is correcting and rebuilding your credit profile so you are attractive to mortgage lenders again.  You will need a mortgage professional to guide you through the individual profile updating, keep you informed of industry and program updates, and advise you of the best course of action to undertake during your waiting period.

Developing a plan for buying a house after a short sale, we will work together to:

  • Review the imposed timelines based on the date your short sale closed escrow.
  • Inspect your current credit report and list the items you will need remedy and how.
  • Review your personal situation and what goals you want to achieve.
  • Determine the best mortgage programs that you should focus on to achieve approval of their program guidelines and down payment amounts that will be needed.
  • Have your personal profile mortgage lender ready for buying a house after your waiting period.

There are FHA Loan programs that may help some buyers who are buying a house after a short sale with extenuating circumstances. There are very specific conditions that must be met and documented but may help some shorten their waiting period for buying a house. During a consultation we can determine if an event that caused your short sale would trigger one of these exemption clauses and how that may benefit your personal situation.

You should read the page on this site titled “Need to know about credit” that has some great reminders. Also read the page “my story” which will give you a better idea of my experience, knowledge, and background in the Arizona mortgage industry. On the home page of my main site, www.kellyzitlow.com, you will find a tab “Credit Analysis”. For a small fee you can obtain your credit consultation report from Advantage Credit, Inc. containing your score range and tips for improvement. On either site, you can select to receive Arizona mortgage market updates, special news, and quarterly newsletters to be better informed during your waiting period by simply filling out the “connect with me” form.

My goal for starting, “buying a house after” a short sale, is to share mortgage expertise, give credit profile direction, and assist clients buying a house who have already endured tough situations.

    Kelly Zitlow
    Certified Mortgage Planning Specialist – Certified Mortgage Instructor
    Vice President – Cherry Creek Mortgage
    Direct: 480.398.4908     Cell: 602.561.6760
    kzitlow@ccmclending.com www.kellyzitlow.com
    NMLS # 164330     AZ BK # 0904024

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