When Can I Buy A Home After a Short Sale?
Back in 2009 and 2010, Arizona was hit with the opposite of a housing boom. Gilbert residents found themselves without a job, and without the means to make their mortgage. It was a hard time for the country, and our Gilbert families suffered, as did the housing market. But, because of the 2 to 3 year window that short sale home owners are required to wait, and the recent surge in the economy, Gilbert residents are finding their way back into the house market.
With that said, let’s take a look at the basic requirements for applying for financing after a short sale:
3 Years – If you’re looking to secure an FHA loan, one of the more popular loans here in Gilbert, you’ll need three years to pass since the short sale of your previous home. This period is called seasoning,
2 Years – Fannie Mae and Freddie Mac require a minimum of two years from the short sale of your home, as well as a 20% down payment. If you’re looking for a conventional loan, or similar loans, from these large lenders but don’t have 20%, you can wait a total of four years from your short sale and put down 10%. If you wait a total of seven years you’ll be able to put down less than 10%.
2 Years – After a short sale, you must wait 2 years before applying for a VA loan.
3 Years – All USDA loans require three years after your short sale.
Now, as with everything there are exceptions to the rule. If you worked with The Reeves Team from the very beginning on the short sale of your Gilbert home, and you have a strong paper trail showing that the short sale was due to ‘extenuating circumstances’ such as a death, divorce or disability, you might be able to beat the window and obtain funding early.
Above all, when buying a home after a short sale you will need the cash to prove that you are financially capable of not only affording the purchase price and closing costs, but the monthly payments as well. The best case scenario accounts for you having 30% for a down payment.
Ask the professionals at The Reeves Team about short-term, private lending. This lending is extremely popular for short sale loans, and in most circumstances your loan will become purchased by a much larger bank within a few years.
You do have options if you’ve experienced a short sale here in Gilbert. Your best bet, talk to an expert who has ample experience with short sales in Gilbert on both sides of the fence – from selling to buying. Give us a call today for more information.
“by Troy Reeves” at Google