For those would-be homeowners who want to purchase a new home today, but had a recent short sale in their history, there is hope.
The typical waiting period on a short sale is at least two years, i.e., a borrower must wait at least two years from the recording of the short sale to become eligible for conventional financing. However, if the circumstances around the short sale were extenuating in nature, it is actually possible to buy TODAY and finance up to 70% of the purchase. Beyond the 30+% down payment, the borrower needs to have an otherwise perfect credit history, strong reserves and a low debt-to-income ratio.
And what about other waiting periods associated with other past credit blemishes like foreclosure or bankruptcy? Check out the following grid for more detail on the typical waiting periods..:
For more details on the above or other tidbits that may help you better prepare you or your clients for a property purchase or sale, please contact your favorite mortgage advisor.