Homeowners can get a home loan after short sale

After you go through a short sale, the dream of homeownership doesn’t have to end there. Homeowners who sell their homes for less than what they owe can qualify for a home loan again.

They’ll need persistence and strong credit discipline.  In today’s tight lending environment, many homeowners tend to think it’s nearly impossible to qualify for a mortgage after a short sale, but its not.  The normal wait perior is at least two years after you go through a short sale to qualify for a mortgage.  But  it is all dependent on the type of the loan and the down payment.

Below are the minimum waiting periods and down-payment requirements to get a conventional loan after a short sale are:

Two-year wait with a 20 percent down payment,

Four-year wait with a 10 percent down payment, and

Seven-year wait with less than 10 percent down payment.

For FHA loans, there’s a three-year waiting period from the short-sale closing date, and home buyers can get a mortgage with as little as 3.5 percent down. Those who qualify for a VA loan have to wait two years and are not required to make a down payment. FHA is the best option and shortest route for buyers with less than 10 percent down.

There is hope out there for you to own a home again if you have gone throught hard times and had to short sale your home. Stay positive, keep persistant and it will happen.

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