Buying A Home After A Short Sale

Underwater homeowners who sell their homes for less than what they owe can qualify for a home loan again. What is required to achieve homeownership is your persistence and strong credit discipline. It may not happen overnight, but you do have options.

The minimum requirement to qualify for a mortgage involves waiting at least two years after the closing of a short sale. However, individual time frames may vary depending upon the type of loan and the down payment. For example:

• Two-year wait with a 20% down payment
• Four-year wait with a 10% down payment
• Seven-year wait with less than a 10% down payment

FHA and VA loans have different requirements and waiting periods than those above. What you need to do is assess your personal situation and determine where you stand on the path to homeownership.

In addition to the required waiting period, rebuilding your credit is crucial. Think of that waiting period as the time you will need to improve your credit score and financial situation. You will need to stay on top of credit bureaus to report the short sale correctly and keep proper documentation.

I am trained to work with buyers after a short sale. For more information, contact me today.