FHA Loan After A Short Sale

Paul,

Would I qualify for an FHA loan? I lost my job and had to Short Sale my home, I received official release by letter of all liability in July 2007.

Is it a 2 year or 3 year waiting period?  Are short sales “officially” considered foreclosures as of today?  Most importantly, do you know of an underwrite who can help me with a loan???

Desperate here, rented for 2 years here in Henderson. I can’t afford a Conventional 10% down.

Love you website – I’d appreciate your help.

Jayne

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Hi Jayne,

It sounds like you are already aware that you qualify for a Fannie Mae Conventional loan which would require 10% down.  Unlike Conventional, FHA doesn’t differentiate between a short sale and foreclosure per se; however, the FHA requirement is ‘a three-year wait from the date that the balance was zero’ and in the case of a foreclosure, the balance might never be zero.

Sounds like you’ve got another year to go if you want to buy with less than 10% down.

Thanks for the questions and hope this helps.

Paul