Had a Short Sale – Do I now qualify for an FHA Loan in California?
Author bio section
I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.
Short sale is increasingly becoming a common option to sell a house in San Francisco (SF) Bay area and rest of California. A short sale is a transaction where a seller sells the property for less that what was owed. If you went through a short sale you could have this question – Do I now qualify for a loan? FHA recently came with a guideline on this question. Below are the highlights:
You are not eligible for a new FHA mortgage if you pursued a short sale agreement on your principal residence simply to
- Take advantage of declining market conditions, and
- Purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
However you could be considered eligible for a new FHA-insured mortgage if
- You were current on your mortgage and other installment debts at the time of the short sale of your previously owned property, and
- The proceeds from the short sale served as payment in full.
If you were in default on your mortgage at the time of the short sale you are not eligible for a new FHA-insured mortgage for three years from the date of the short sale. Lenders may make exceptions to this rule under certain circumstances.
This guidance is effective immediately.
If you had a short sale and would like to find out what are your options with regard to buying a new home contact me. I will be glad to explore all options for you.
Related Post – Complete Guide to Buying Your Next House After Short-sale, Foreclosure or Bankruptcy
Related Posts
- 78People who are retired or about to retire may have prepared all their lives to live a quiet life in their old age. However, with the high costs of living in general, this may be more difficult than they thought. In this case, people over 62 have the option of…
- 68ABCs OF FHA LOANS Learn everything you need to know about Federal Housing Administration (FHA) loans with this easy-to-follow guide. Start from the beginning or jump in wherever you are to continue! Guides ABCs of FHA LOANS 1 Basics of FHA Loans What are FHA Loans? Credit Score Requirements Basic…
- 64The Government said last week it would offer principal reductions for borrowers who are underwater (owe more than their homes are worth.) The FHA plan is targeted at investors who currently own these underwater mortgages (see Negative Equity Share Chart below - source American Core Logic). Under the plan, the…
- 64Not since April end had mortgage forbearance dipped below 4 million. Well, it did just that for the week ending Aug 10, reports Black Knight. On August 3, the mortgage forbearance number was 1,000 over 4 million. This week, it has come down to 3.93 million, representing a fall of…
- 60If you had a Foreclosure, Bankruptcy, Short Sale or a Deed in-lieu - you may now be able to qualify for a mortgage to buy a home one year after that incident. Federal Housing Administration (FHA) recently announced "Back to Work" loan program that would help some borrowers in California…