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:
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.
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