AFTER A SHORT SALE - When Can I Buy A New Home?

Here is a question from a concerned homeowner, “If I go through a short sale, how soon can I purchase another home?  I was told that if I did a short sale instead of allowing the home to be foreclosed on, it is not as bad“.  Answer, “It all depends“. 

Typically, if you want to purchase a home using a FHA Loan (which allows for only 3.5% down instead of the 10% or more required by a conventional loan), you would have to wait 3 years after either a short sale or foreclosure.  If you decide to do a conventional loan, many conventional lenders are attempting to use the same criteria of 3 years as FHA loans for both short sales and foreclosures. 

However, both with FHA loans and conventional loans, exceptions can be made when there is a short sale.  These exceptions can be based on isolated incidents such as an illness, death in the family, or job loss - exceptions will be determined on an individual basis.

Need more help on what a short sale is or need help determining how you should list your home?  Contact places2love@gmail.com or 404.444.5777.