Posted on: 01st Aug, 2010 12:35 am
My husband and I are considering a short sale. Our mortgage has increased over $200 since we bought the home and due to additional expenses we are having a hard time keeping things up. We have never been late and we have received confirmation from the lender that they will allow a short sale even if we are current. We want to be able to buy something as quickly as possible. I am not on the mortgage for our current home, I have a credit score of 690 ( I have 100% available credit) and my husband currently has a score of 740. I anticipate at least a 100 point drop in his score from a short sale. He has been with his employer 5 years and I have been with mine 3 years. What are the chances of being approved for a mortgage after a short sale if I was the primary borrower and he was the co-borrower?
with the exception of private money (hard money) financing, after any kind of default on a mortgage you can generally expect to wait four years for new conventional financing, or three years for a new fha loan. private and hard money loans carry exceptional high rates, typically 10% or higher. these loans are made available for short term investment plans and not to purchase a home that you will be living in for a while.
lenders have set the bar at 620 to obtain an automated underwriting (aus) approval, and the trend is moving up (some lenders like chase have set the bar at 660). monitor your credit scores and pay rent on time as your rental housing history will count when you apply for a mortgage down the road.
fannie and freddie (who are owned by our government) are requiring that lenders adhere to the aus decision if they want to close loans that can be sold (about 85% of all mortgages originated today are sold to these agencies). the aus engine reflects current agency credit policy in this market. i think you would be setting yourself up for disappointment if you expected to get an agency loan in less than 3 or 4 years.
you are not alone...many good people have seen their credit rating tank due to high leverage when the value of their real estate assets fell.
you may want to consider refinancing your home, with the home path loan program. this loan program would allow you to refinance your home, lower interest rate and keep your credit ratings as is.
our company offers the home path loan program, let me know if i can help.
lenders have set the bar at 620 to obtain an automated underwriting (aus) approval, and the trend is moving up (some lenders like chase have set the bar at 660). monitor your credit scores and pay rent on time as your rental housing history will count when you apply for a mortgage down the road.
fannie and freddie (who are owned by our government) are requiring that lenders adhere to the aus decision if they want to close loans that can be sold (about 85% of all mortgages originated today are sold to these agencies). the aus engine reflects current agency credit policy in this market. i think you would be setting yourself up for disappointment if you expected to get an agency loan in less than 3 or 4 years.
you are not alone...many good people have seen their credit rating tank due to high leverage when the value of their real estate assets fell.
you may want to consider refinancing your home, with the home path loan program. this loan program would allow you to refinance your home, lower interest rate and keep your credit ratings as is.
our company offers the home path loan program, let me know if i can help.