About Short Sales
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The facts about how long buyers must wait before obtaining financing. |
A common question home buyers have today is: How long must I wait before obtaining financing after a short sale? Below is an overview by loan type of this important information.
It depends on the loan you want to get to purchase real estate. For instance on a Fannie Mae loan the waiting time is 3 years but may go as long as 7 years depending on the loan to value ratio.
If you’re going after a FHA loan, 3.5% down. You’ll have to wait 3 years after a short sale to be able to qualify for a loan. Quick Tip: There is no time restriction if the borrower made all their monthly payments during the short sale and 1 year prior to the short sale.
If you want a VA loan, you will have to wait 2-3 years. There are no definite rules yet but assuming it will follow the other loan types
If you would like more information of financing timelines visit our other article:
Want to Purchase a Home After a Short Sale, Foreclosure or Bankruptcy?
Guidelines may change according to Fannie Mae, Freddie Mac or government authorities. It is always best to speak with a real estate professional about your real estate concerns. If you have real estate legal questions, it is best to speak with a real estate attorney. If you do not know one, contact us and we can provide a non partial list of local real estate attorneys.
If you have any questions about these timeframes or if you would like additional information, please call us today.
