Short Sale Agent FAQ: How Soon Can You Buy a Home… After a Short Sale?

San Diego Realtor Corner

As a Short Sale Agent & San Diego Realtor  (yes we’re exemplary at Traditional Home Sales as too) we receive so many questions from prior Short Sale Home Sellers AND New Prospective clients as well. One of the most frequent questions is: “How soon can I buy after a short sale? What is the time lapse? The answer to that question is, “It depends ” If a borrower is going to use conventional financing, (that is putting 20% down), the answer is (drum roll!)…

Two years, and the good thing about that is,is that that 20%  can be a gift – so if you’ve been thinking about discussing the possibility of  a short sale with a short sale agent and in the future you decide you’d like to buy AND you have a family member or someone that is willing to gift you that 20% down, or part of that 20% down and you can make up the rest of it, in two years you can go straight to a conventional mortgage.

What if you put less Than 20% Down on a home?

As a Short Sale Agent in San Diego I do need to mention that if you are wanting to put down less than 20% as a down payment on a home and choose to use conventional financing, then it is four years to be able to qualify for a conventional loan.

Let’s assume you don’t have that much money that you are looking to do FHA financing, then it’s 3 years, and during those 3 years you need to make sure that during the prior 12 months prior to financing that you DO NOT miss ANY other payments. Of any kind. Period. No kind of credit card, any kind of car loan, etc.

Immediately after a short sale? It’s possible!

Now  you may be thinking, “Well, ok, I can see that I can make my mortgage payment all the way up to doing my short sale.” GREAT! There are a few people out there that can do maintain their payments up until the close of escrow on their short sale. If you find yourself in that situation, then you can immediately upon closing purchase a home – provided you have the 3.5% down payment via FHA Financing.

Now, there are some guidelines with that. It needs to be in a different area, not in the same neighborhood that you sold your property in, etc. So you may want to consider moving closer to work or if you’re a parent, maybe closer to your child’s school, but it is very workable. Questions? Contact us!

Are there any exceptions?

Of course there are. If you have specific questions about your situation, give us a call. We are pioneer Short Sale Agents in San Diego that have seen hundreds of cases over the years. If we are not able to answer that question directly ourselves, we will put you in touch with one of expert team members in mortgage that we work with. They will be more than happy to assess your situation get you the exact answers you need – but generally speaking with a short sale, you can buy again in the not too far distant future. (Applause Please)

A Short Sale Agent & San Diego Realtor Disclaimer:

Note to readers: Lending guidelines change all of the time. The guidelines stated here are true as of today’s date, and every case is different, so I encourage you to contact us if you have any other questions. We  have a VERY experienced team that we work consisting of mortgage lenders, legal professionals, as well as tax professionals. The depth and range capabilities may surprise you!

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