How Long After A Short Sale Before I Can Purchase A Home Again?

Green House with Money - Purchase a Home In Asheville NCThe worst scenario happened for you. You found yourself in a situation where you had to short sale your home or it went into foreclosure. In the past most banks have had you wait 36 months for a short sale or up to seven years for a foreclosure before you could purchase another home with a loan through the Federal Housing Administration.

Great news! FHA has initiated a program called Back to Work, that is opening an opportunity for a buyer to purchase a home sooner, sometimes as little as 12 months from a short sale, foreclosure or deed in lieu of foreclosure.

The program will run through September 30, 2016.

How to qualify:

To qualify for the program, you will need to document the financial problem that prompted the short sale or foreclosure. These items could include a loss in income for six months or so prior to the loss of their primary residence. You would then have to show the steps you have taken to re-establish your income and credit. (Your credit score needs to be at least 640 or you can also undergo a HUD-approved counseling agency program on home ownership or residential mortgage loans). The program does not, unfortunately consider divorce, previous loan modifications or adjustable loan recasting as reasons to qualify.

With conventional loans, boomerang buyers are typically eligible to buy again seven years after a short sale or foreclosure, or possibly three years with sufficient documentation of the circumstances and a lender exemption. FHA, VA, and USDA all offer opportunities for boomerang buyers to repurchase a home 36 months following a short sale or foreclosure.

For more information about local programs to repair your credit, or assistance in getting pre-qualified to purchase again, contact me at 828-768-4481. I am a Certified Distressed Property Expert (CDPE) and can assist you in getting ready for home ownership again.

 

Source: “FHA Program Gives Distressed Homeowners a Second Chance”

 

Asheville NC Real Estate Sales

Because buying or selling a home is a big decision, you need to trust in Sandra LoCastro, a real estate professional in the Asheville area, with Exit Realty Vistas. You will have step by step guidance and access to resources to make your transition a smooth one. Call me today at (828-768-4481)www.buyashevilleproperties.com

This blog was written by Sandra LoCastro (www.sandrasellsasheville.com)

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