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Qualifying For FHA Loan After Short Sale And Foreclosure

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Qualifying For FHA Loan After Short Sale And Foreclosure

This BLOG On Qualifying For FHA Loan After Short Sale And Foreclosure Was PUBLISHED On July 8th, 2019

Qualifying For FHA Loan After Short Sale And Foreclosure

Home Buyers can qualify for FHA Loan After Short Sale.

  • Qualifying for FHA Loan After Short Sale requires borrower’s to wait out a mandatory waiting period after a short sale and foreclosure
  • FHA requires no late payments after the short sale and/or foreclosure as well as re-established credit
  • The mandatory waiting period in qualifying for FHA Loan After Short Sale, deed in lieu of foreclosure, a short sale is three years
  • The three year waiting period start clock starts from the date of the short sale that is reflected on the HUD-1 Settlement Statement closing papers
  • The three year waiting period after foreclosure or deed in lieu of foreclosure starts from the recorded date of the housing event
  • The mortgage loan application when qualifying for FHA Loan After Short Sale and/or foreclosure cannot be dated prior to the three-year waiting period has elapsed
  • The borrower can have a real estate purchase contract that has been dated prior to the short sale date and/or foreclosure
  • But cannot receive mortgage documents and disclosures prior to the three-year anniversary short sale date
  • The FHA Appraisal can be ordered prior to the three-year short sale date and/or foreclosure

In this article, we will discuss Qualifying For FHA Loan After Short Sale And Foreclosure.

No Waiting Period After Short Sale If Mortgage Payments Have Been Timely Up To Date Of Short Sale

No Waiting Period After Short Sale If Mortgage Payments Have Been Timely Up To Date Of Short Sale

There is no waiting period in Qualifying For FHA Loan After Short Sale if the homeowner has been timely on their mortgage payment until the date of their short sale.

  • Unfortunately, many lenders will force the homeowner to be 30 days late on their mortgage payment in order to have the short sale in effect
  • Make sure if you are going through a short sale process currently that you do not skip any payments
  • Be timely on your mortgage payment until the date of your short sale
  • A 30-day late payment on your mortgage payment will mandate a 3 year waiting period in Qualifying For FHA Loan After Short Sale
  • Whereas if you are timely on your mortgage payments until the date of your short sale, there will be no waiting period in Qualifying For FHA Loan After Short Sale

Home buyers can qualify for an FHA Loan one day after their short sale if they have been timely on their mortgage loan payments until the date of their short sale closing.

Other Requirements In Qualifying For FHA Loan After Short Sale

Other Requirements In Qualifying For FHA Loan After Short Sale

Besides the mandatory waiting period after a short sale, to qualify for FHA Loan After Short Sale, the borrower needs a minimum credit score of 580 FICO to qualify for a 3.5% down payment FHA Loan. Lenders do not want to see any late payments after a short sale, foreclosure, deed in lieu of foreclosure. Lenders want to see that borrowers have re-established credit after housing event. Home Buyers can qualify for FHA Loans with outstanding collection accounts and charge offs without having to pay them off. However, lenders do not want to see any new collection accounts that have been activated after the housing event has been finalized. If you are looking in Qualifying For FHA Loan After Short Sale, foreclosure, deed in lieu of foreclosure, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. We have no lender overlays on FHA Loans.  Gustan Cho Associates at Loan Cabin Inc. are direct lenders with no lender overlays on government and conventional loans.

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