Can I short sale with a loan modification?

We can help you purchase after a short sale

For many people who short sold their homes, qualifying for a home purchase loan is on the top of their list once back on their feet. The good news is that since the recession, guidelines and programs have been created specifically for people who short sold their homes. From our ten years of experience we have seen some people purchase a new home within a year after a short sale. We are able to provide residential home loan services through our sister company, Reliable Lending, created specifically to help people who short sold their home. If you have experienced a foreclosure or sold your home through a short sale, give us a call at 1‑800‑760‑9156 to speak with a loan officer. Please view the following expanded loan guidelines:

Conventional Loans

Conventional Loan guidelines, which are written and established by Fannie Mae and Freddie Mac, state that a borrower must wait a minimum of two years after the closing date of a short sale. The borrower must also have 20 percent for a down payment, though a smaller down payment is accepted with an extended waiting period. Extenuating circumstances explained to a Freddie or Fannie Mae lender and proven in written form may shorten the wait limit. Some lenders are a little more lenient than others, and because of this we will gladly give you advice as to a lender who may be able to help you. Give us a call at 1-800-760-9156 and we will be able to point you in the right direction.

FHA Loans

Federal Housing Authority Loans will allow you to receive a loan depending on your credit history and reasons for a short sale. Under normal circumstance, you can qualify for an FHA loan with as little as 3.5 percent down payment and a waiting period of three years. The FHA also has programs that allow borrowers to qualify for a loan sooner than three years for those who experienced hardships like job loss, illness, death and in some instances divorce. Typically to qualify for an FHA mortgage you must have a credit score of 620 and above and have an income-to-debt ratio less than 41 percent. Those who wish to be on the fast-track of loan qualification may also have to participate in an FHA-approved counseling program and provide full documentation of hardships and credit history for the past year.

Conventional, Private Lenders

Most other lenders follow Fannie Mae's guidelines for post-short sale mortgages, but can be more flexible in the terms of the waiting period. Depending on the borrower's credit score, explanation and down payment, some lenders allow the purchase of a new home in as little as 90 days from the close of their previous short sale. If you wish to find a lender who will allow you to receive a loan in the quickest amount of time, give us a call at 1‑800‑760‑9156 and we can provide you with a current list of lenders depending on your needs.

VA Loans

Veterans Administration loans with no down payments are available after a two year waiting period.

Your Credit Scores

Regardless of the waiting period, every lender will want to see that you have established good credit after a short sale. This can also mean that with the higher credit score you have, the lower your interest rate will be. In normal circumstances, you can help boost your credit score after a short sale by paying your bills on time. Some of the other major factors in boosting credit scores include keeping credit balances low, maintaining a low number of credit accounts and monitoring credit reports for errors. Over the years we have had experience with different credit repair counselors, so give us a call if you need advice.

Expanded Loan Guidelines
CreditStarting at 620 FICO
Foreclosure = 12 Month Seasoning
Bankruptcy = 12 Month Seasoning
Short Sale = 12 Month Seasoning
EZ Doc12 Month Bank Statements
Non-Owner12 Month Bank Statements
Asset Depletion1-4 Units OK
CashoutAcceptable as Stand Alone or with Full Doc
Max FinancedUp to 10 financed properties permitted
Lite Doc1 Year Tax or W-2