Posted on: 15th Oct, 2012 02:44 am
My husband was transferred in 2011. Due to this relocation we had to short sell our home in Phoenix. But we were never late and we didn't miss any payments on the first or the second. The short sale was completed in December 2011. All of our other bills have stayed current. Our credit scores are in the high 600s. We applied for and were approved for an FHA loan in June 2012. But last week our broker called to say the rules had changed and we couldn't qualify with FHA for another 2 years. Is this really the case? Can anyone clarify this? Thanks in advance for any help/answers you can provide!
Hi Baron!
Welcome to forums!
Sara is right and so is your broker. This is a criteria which you will have to meet irrespective of whichever lender you go for. Unless you have passed 2-3 years after short sale, it will be difficult for you to qualify for a loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Sara is right and so is your broker. This is a criteria which you will have to meet irrespective of whichever lender you go for. Unless you have passed 2-3 years after short sale, it will be difficult for you to qualify for a loan.
Feel free to ask if you've further queries.
Sussane
FHA does in fact insure loans where there was a previous short sale without a 3 year waiting period....and the rules have not recently changed.
From the FHA guide 4155.1 4.C.2.l
Short Sales
A borrower is not eligible for a new FHA-insured mortgage if he/she pursued a short sale agreement on his/her principal residence simply to take advantage of declining market conditions, and purchase a similar or superior property within a reasonable commuting distance at a reduced price as compared to current market value.
Borrower Current at the time of Short Sale
A borrower is considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage, all mortgage payments on the prior mortgage were made within the month due
for the 12-month period preceding the short sale, and installment debt payments for the same time period were also made within the month due.
Get a new mortgage broker to determine if there is anything else that is preventing your approval.
From the FHA guide 4155.1 4.C.2.l
Short Sales
A borrower is not eligible for a new FHA-insured mortgage if he/she pursued a short sale agreement on his/her principal residence simply to take advantage of declining market conditions, and purchase a similar or superior property within a reasonable commuting distance at a reduced price as compared to current market value.
Borrower Current at the time of Short Sale
A borrower is considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage, all mortgage payments on the prior mortgage were made within the month due
for the 12-month period preceding the short sale, and installment debt payments for the same time period were also made within the month due.
Get a new mortgage broker to determine if there is anything else that is preventing your approval.