Conventional 97 loans

[Reyandanna]

Does the conventional 97 have any time restrictions like FHA? I.e. 3 years 3.5% down, 2 years at least 10% down, etc....

My short sale was on 11/19/10. Looking to buy in a desirable neighborhood in Miami. Some houses still available in the 425,000 range But they are slowly disappearing from the market. I've heard FHA is difficult for a seller to accept due to possible lowballing of appraisal value. Any body have any experience in that?

Thanks.

[StartingOver10]

Yes, there are restrictions for a conventional loan following a short sale.

If your down payment is less then 10%, like it would be on a 97% loan, then the wait period is 7 years from the time the deed transferred in the short sale.

If you put down at least 10% then the wait period is 4 years.

If you put down at least 20% then the wait period is 2 years.

It is possible for you to obtain a new loan with only 10% down after 2 years if your short sale was a result of extenuating circumstances.