@Anonymous wrote:
It has nearly been 2 years since my Short Sale (with delinquents) was completed. My wife and I were looking at a new home purchase 8 months ago and was instructed that I would need to wait until that 2 year mark, as we could buy a home with a Condo still under our name and only my wife on the loan.
We just got our dream property on the water, paid cash, and are about to go after a construction loan. The property itself is going to be about 30% of the loan value, and the appraised value of the home will most likely be 2.5x the loan amount. What we have;
- Wife's credit.... spotless. It is in the 780 range b/c of new accounts and was previously at 805.
- My credit.... getting better. When pulled before, middle score was about 685. This was after the short sale.
- We have minimal debt on cards/record and nice income.
I know FHA and other lenders will put the 2 year mark on credit, but I would think with so much down that they would take certain circumstances into consideration.
Any experience or thoughts on the matter would be appreciated.
Under the new FHA matrix for derogatory credit (short sale is considered derogatory), you can get a new mortgage 3 years from the date that the house closed and transferred from your name into the new buyers name.
OR, if you had NO LATE PAYMENTS on any mortgages or consumer debts for the 12 months leading up to your short sale AND the short sale was not taking advantage of market conditions, THEN there is no waiting period. I'm not really sure how you would show that you weren't taking advantage of market conditions unless you were transferred by your job or something similar. Maybe an underwriter can jump in here and give details.
Conventional loans are longer.
USDA loans are more lenient.
