Lately, I have been getting a lot of questions about the timeframe sellers that successfully completed a short sale on their home have to w
before they can buy again
before they can buy again. Because of depressed home prices, many consumers understand the benefits with initiating a short sale (if appropriate to their situation), and then waiting the necessary timeframe required so they can purchase again. So what are the key requirements to know how soon you can get back into the housing market?
These are the first few questions I ask (and typically even NEED to ASK) whenever I get this question:
- Did the borrower have an FHA Loan? In Arizona (and perhaps across the country), it is my understanding right now you have to wait 3 full years from the date of the sale before re-purchasing. Credit scores are essentially irrelevant in this situation. Remember, even a short sale will negatively impact your overall credit score but perhaps not to the extent of a foreclosure.
- If answer above was NO; next question would be “Were you current on your loan?“ If you were able to stay current, (not delinquent on any payments), during the short sale process – there is a strong chance you can re-qualify for a conventional loan as soon as the day following the close of the short sale. (There may be other restrictions that would apply on this subsequent loan – seek a loan officer’s advice for more details or give me a call.)
- If the answer to above was NO, then plan on waiting 3 years to apply for financing
againunless you have good fortune and do not need to seek financing on your next home purchase (pay cash).
Hope this helps. If anyone has information that may supplement or correct what I have here, please contribute. If you know anyone in your circle of family or friends that is underwater in their home, please have them give me a call. There are numerous government programs and options available to them, including a short sale. I just want to help homeowners!