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.