Posted on: 05th Mar, 2010 09:17 am
I have a adjustable rate loan that can not be modified or refinanced do to the depreciation. I was told by my lender to do a short sale. I want to buy another house. Can I buy another house with a cosigner? I have never missed a payment and my credit is good now, I'm not sure what will happen after a short sale
your credit will likely take a tumble, but that may not preclude you from another purchase. a cosigner might be the way to go, but that's really not optimal. if your score is sufficiently high post-short sale, and your income is sufficient, you'd probably be fine all by yourself.
typically, you'd engage a cosigner strictly because you don't qualify based on income. of course, if that's the case, you can still move in that direction.
clearly, it's going to be a great idea to check your credit scores after the short sale takes place to see if you'll run into any difficulty with qualifying for a new mortgage.
typically, you'd engage a cosigner strictly because you don't qualify based on income. of course, if that's the case, you can still move in that direction.
clearly, it's going to be a great idea to check your credit scores after the short sale takes place to see if you'll run into any difficulty with qualifying for a new mortgage.
FHA is the only way you can go with a cosigner. Under FHA's guidelines you are not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale. Lenders may make exceptions to this rule under certain circumstances, but it will be hard finding an investor that will do that.
Under conventional loans you must have a minimum of 2 years established credit after the short sale.
Your lender would be looking at additional credit during those times as well. So you should not be late on any additional credit items.
Under conventional loans you must have a minimum of 2 years established credit after the short sale.
Your lender would be looking at additional credit during those times as well. So you should not be late on any additional credit items.
So let me see if I am understanding this information correctly. I can possibly buy depending on if my credit isn't hit too hard. Can I negotiate with my lender on how they report on my credit. And because I am doing a short sale, I can not do a FHA loan. I seriously do not want to rent. Home prices are down and the interest rates are great. I'd rather stay but it looks like I have no choice.
I thought if one does a short sale without any late payment, they can apply for a FHA immediately. Did this just change?
As far as I know, you will have to wait for 2 years minimum in order to qualify for a loan after a short sale.