01-25-2013 02:20 PM
After 1.5 years of trying, last April we were able to close on our short sale in Temecula. I'm looking to purchase a new home here in San Diego, but I'm wondering what my chances of success would be. We took a hit on our credit rating, but we are still above 700. The only major ding is the fail to pay during the time of the short sale. I have enough capital and liquidity to put at least 5%+ down. At this point I'm just curious as to what my chances would be to get a pre approval. Are there certian banks out there that tolerate these types of loans over other banks? Not exactly sure where to start. I don't want to waste the time of a realtor if there is no chance of securing a loan.
I would appreicate answers only based on experence and not what people think. Thanks.
01-25-2013 04:22 PM
You will need to speak with a mortgage expert who can explain when and how based on your financial situation.
A quick google yielded 2-3 years. Fannie Mae requires 20% down so FHA would be the choice for less than 20% down.
01-28-2013 01:26 PM
We were in the same boat as you, short sale with missed payments. We had to wait at least 2 years to even think about qualifying for a loan. Our scores were in the low 700s but we were able to raise 20% down. Even with a conventional loan, we were repeatedly losing out to all cash offers. You can go with an FHA loan, if you can't meet the 20% down standard, but FHA loans have more restrictions and is the least attractive option for the seller. This is just my experience. Hope it helps.
P.S. We were able to close on a home after 6 months of looking but the $/sq ft was at the upper end of range at that time. Our interest rate was 3.875%.
01-28-2013 10:34 PM
If there were no late payments you can refinance right away. If there are late payments you can purchase 2 years after a short sale with Fannie Mae with 20% down or Home Path program with 3% down. or 3 years after with FHA. Those are really the only options for you at this point.