Becoming a homeowner after a short sale - how long will you have to wait?Posted by Minna Reid on Monday, November 28th, 2011 at 8:48am.
Are you considering or involved in a short sale in Greater Hartford/Eastern Connecticut? Wondering what it will take to buy a new house again one day?
Guidelines for post short sale borrowers are getting better all the time. Assuming you have taken other measures to improve your credit post short sale, gaining new financing is very possible after just a few years.
A Fannie Mae mortgage will be available to you two years after your short sale, assuming you qualify otherwise. In fact, if you managed to not miss any payments prior to your short sale, you can get new financing immediately.
The FHA will also lend to you immediately after a short sale with no missed payments, or three years later if you were in default at the time of the short sale.
Most people are in default at the time their short sale is approved. Although it is possible to stay current on your payments and have a short sale approved, it is always very challenging to get a lender to approve a short sale for a current borrower.
So - the good news is that in general just 2-3 years after your short sale, you will be able to qualify for a new FHA or Fannie Mae mortgage, and it is my belief that many other lenders will follow suit and adopt these same guidelines.
Minna Reid is a CT Licensed Real Estate Broker Associate with Keller Williams Realty, specializing in short sales, serving central CT including, but not limited to; Avon, Berlin, Bristol, Cheshire, Cromwell, Farmington, Glastonbury, Hamden, Meriden, Middlefield, Middletown, Newington, New Britain, North Branford, North Haven, Plainville, Portland, Prospect, Rocky Hill, Southington, Wallingford, West Hartford, Wethersfield and Wolcott.