Need help, In process of underwriting for mortgage

[Anonymous]

Funny you asked, just found out the other day I got a lender, got the commitment today. So it is possible to get a loan after a charge off 

[VALoanMaster]

What type of loan?

[Anonymous]

Conventional,   4.35  % rate

[me12345]

Wow! I don't know how this was done based on what you told us here.... Goes against all the guidelines. 

[emferrari]

I am going thru a similar process right now.

I had most lenders tell me it can not be done. I had a short sale back in June/2014 and since then we have been perfect on the mortgage and other bills. We are putting 20% down on a new house.

Here is what one of my lenders told me:

"Prior to October 2017, we did have it to where there was a 4 year waiting period after a short sale before you could get another mortgage. As of October 2017, only for a short sale, there is a 3 year waiting period after the title transfer date."

I have not yet started the process as I am waiting for the contract, but I have another major bank LO that told me he recently closed 2 loans with very similar situations to mine. And I am not doing an FHA Loan, it is a Conventional Loan.

In addition, I have as a backup, Quicken Loans Rocket Mortgage Advantage Credit product. It has a rate higher about 1250 base points, but the goal is to close and refinance about 2-3 months later with no lender costs.

Can the OP please let me know if he was able to finally close?

[Anonymous]

You can get a mortgage 2 years from the date of the short sale, I believe you just need a letter stating what happened, if you had trouble paying your bills etc.

[VALoanMaster]

Fannie & Freddie both require a 4 year wait after a short sale unless you can document the short sale was the result of extenuating circumstances in which case the waiting period is reduced to 2 years.
FHA requires a 3 year wait unless there were extenuating circumstances OR the mortgage payments & all installment payments were made on time for the 12 months preceding the short sale.
VA doesn’t have short sale specific guidelines so it’s realy up to the lender. Most lenders apply the standard VA foreclosure guidelines which require a 2 year wait unless there were extenuating circumstances. If the mortgage payments were on time leading up to the short sale some lenders will approve you immediately while others will require a 1 year wait.