Get a Mortgage After a Short Sale in 2018

Losing a home through a short sale or foreclosure can be a troubling experience. Many that go through this process feel a sense of hopelessness about becoming a homeowner again anytime in the near future.

Fortunately, the opportunity to purchase a home again after a short sale is becoming much easier.  Fannie Mae recently reduced the waiting period from 4 years to 2 years for significant derogatory events, such as a short sale. If 2 years has already passed since your short sale (or if you intend to wait until after the 2 year waiting period), below is a list of excellent conventional mortgage lenders to consider for your home loan.   If you wish to purchase a home in as little as 1 day after your short sale, you can view a list of non-prime mortgage lenders further below on this page.

Conventional Lenders with 2 year Waiting Period:

Bank of America
Freedom Mortgage
New American Funding
Quicken Loans
Guaranteed Rate
Prime Lending

All of the above lenders adhere to the Fannie Mae guidelines that you must wait at least 2 years until you are eligible for a conventional mortgage. In order to qualify for a mortgage, you will also need to meet other loan requirements with the lender.

If you intend to purchase a home in less than 2 year waiting period, you can view some of our favorite non-prime lenders below. These non-bank mortgage lenders have new loan products that are providing opportunities at home ownership even just 1 day after a short sale!

Please keep in mind that these new non-prime loan products differ from the reckless mortgage programs that existed before the subprime mortgage crisis. In order to qualify, you must be prepared to put a sizeable down payment (usually between 10-35%).

Non-Prime Lenders with No Waiting Period / 1 Day After a Short Sale

Citadel Servicing – Citadel offers options for borrowers even just 1 day after a short sale. However, to get the best interest rates and lowest down payments, it will help if you are at least 1 or 2 years past your short sale. If less than a year has passed since your short sale, the maximum LTV allowed is 80%. You must have at least a 600 FICO to qualify for this scenario. You can view Citadel’s non-prime rate sheet here. You can actually qualify with even just a 500 FICO score, but would need to place a higher down payment.

Prime Equity – Prime Equity also offers financing to borrowers even just 1 day out of a short sale.  They allow up to a 90% LTV, and do not require any mortgage insurance.  Credit scores are allowed all the way down to 500, but expect to pay a higher down payment the lower your credit score.  You can learn more about the Prime Equity non-prime program which is certainly a competitive non-prime loan product.

Caliber Home Loans – Caliber Home Loans offers the Fresh Start Program, which offers an opportunity to receive a home loan even with a recent short sale.  You must have a 580 credit score or higher to qualify.  They offer low down payment options.  Loans are available from $100,000 up to $1,000,000.

Northstar Funding – Northstar Funding requires that at least 12 months pass before you are eligible for their Buying After Short Sale program.  This program is highly recommended for a home purchase, rate & term refinance, or cash out refinance.  The loan terms are more competitive than the average non-prime loan, so if at least 1 year has passed since your short sale, you may want to consider checking out Northstar Funding for your new home loan.

Would you like some help finding a lender for your mortgage? We provide a free lender matching service.