Quantcast
Learn About Homeownership:
QuestionsCompaniesPeople
Few decisions are more important than how to pay for or maintain your home. Question Big can help you stay smart and avoid mistakes.
411
Views
1
Answer
0
Likes
Amanda Forrest
a year ago
My husband and I had to sell our previous residence via short sale where we were a few months delinquent in our payments. Our credit scores are in the 580 vicinity and we are currently renting, but found a very reasonably priced home we would like to purchase in the neighboring town, which would be less per month than our current rent. Do we have any options right now? Short sale was closed in Nov. 2015.
 
Answer this question:

Please log in to submit an answer.

Best Expert Answer
Joe Wallace
a year ago
FHA loan rules state, "A Borrower is generally not eligible for a new FHA-insured Mortgage if they relinquished a Property through a Short Sale within three years from the date of case number assignment.
This three-year period begins on the date of transfer of title by Short Sale.
(a) Exception for Borrower Current at the Time of Short Sale
A Borrower is considered eligible for a new FHA-insured Mortgage if, from the date of case number assignment for the new Mortgage:

--all Mortgage Payments on the prior Mortgage were made within the month due for the 12-month period preceding the Short Sale; and
-- installment debt payments for the same time period were also made within the month due.

(b) Exception for Extenuating Circumstances
The Mortgagee may grant an exception to the three-year requirement if the Short Sale was the result of documented extenuating circumstances that were beyond the control of the Borrower, such as a serious illness or death of a wage earner, and the Borrower has re-established good credit since the Short Sale."

USDA loan rules in HB-1 3550 state that a borrower with a short sale on the credit record will be subject to further credit scrutiny. However, in many cases you may find that credit between 620 -640 is required for lenders to work with you in these circumstances. You can call the FHA directly and request a referral to a local, HUD-approved housing counselor who can discuss your needs with you in the pre-purchase phase.
FHANewsBlog.com
Our blog is brought to you by the knowledgeable group of counselors at FHA.com
Visit our website
Best Expert
Answer
Ask a Question
 


Choose up to 5 tags (e.g. FHA loan). We'll recommend some, but you can change them if you want.
Thank you!
Please check the email address you registered with for your account confirmation. Then click the activation link to get started.
Question Big is a community of consumers and professionals sharing experiences, knowledge and advice.
Report Content
I'm reporting this because I think it is:
Report User
I'm reporting this user because I think the user is:
Report Company
I'm reporting this company because I think the company is:
Thank you!
Our team will review the content you reported and will take appropriate actions. We appreciate your contribution to the Question Big community.