how soon can we get a loan after having short sale?

[Nhung]

Well- we got a pre-approve letter and found a house we like. We are so excited about this opportunity we made an offer and got an agreement with seller. But now we got a news from lender that we are having an issue which meant we may not able to get a loan.
Back in the past my husband and his ex-wife had BK included their old house- it happened back on 2005 then 2009 we had to sell that house in short sell.

So here we go, we are stuck on this situation....

We don't even know when we will able to get a loan for a house again... I am very up sad with all my husband's past. I tried my best to have his credit score up to the point we can get a loan but as you know with his history...
Is that any chance for us to get a loan? How many year after having short sale we can get a loan again?


Please give any advice you may have.

Thanks a lot,
Rose

[Evan Bedard]

We don't even know when we will able to get a loan for a house again... I am very up sad with all my husband's past. I tried my best to have his credit score up to the point we can get a loan but as you know with his history...
Is that any chance for us to get a loan? How many year after having short sale we can get a loan again?

Thanks for joining Rose.

I'm sorry to hear the short sale is blocking your chance at obtaining a new home loan. This is basically the break down about buying a new home after going through a short sale:

Fannie Mae now allows borrowers to obtain a new mortgage after twenty four months from the date of closing. However, to qualify for a new loan within this time period a 20% down payment will be required. For those who can only manage a 10% down payment the wait may be up to four years or more. However, if one can prove “extenuating circumstances” such as such as job loss, health problems, divorce, etc, then you should be able to purchase immediately after two years.


If you are able to maintain current up to the date your home closes, have a good debt to income ratio, and have a impeccable credit rating you may be eligible for a new loan right away.


Here are the new FHA requirements: http://www.hud.gov/offices/adm/hudcl...es/09-52ml.pdf


Borrowers are considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage:

• All mortgage payments due on the prior mortgage were made within the month due for the 12 month period preceding the short sale, and
• All installment debt payments for the same time period were also made within the month due.
• Borrowers in default on their mortgage at the time of the short sale (or pre-foreclosure sale) are not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale.
• Lenders may make exceptions to this rule for borrowers in default on their mortgage at the time of the short sale if
• The default was due to circumstances beyond the borrower’s control (such as death of primary wage earner, long term un-insured illness, etc.), and
• The review of the credit report indicates satisfactory credit prior to the circumstances beyond the borrower’s control that caused the default.