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rgaddy75 · Joined: 03 May 2011 Posts: 1 1.41 Dollars($)

I'm wondering if i should buy a home? I owned a home that was sold in a Short Sale over 1 yr ago. The debt was settled for less the amount and the rest was wrote off. Since the Short Sale I have received a promotion and my income has increased. I currently pay 740 a month in rent. The only lender I have been able to qualify with is a local credit union. They have approved me for a 5/1 ARM. The majority of lenders and programs have a 3 year wait after Short Sale. I am looking in the 120k range which the lender said would put my debt to income at 35%. My FICO score is 680 and the only negative mark is the short sale. Should I proceed with the 5/1 ARM and hope to refinance to a fixed in a few years? I was considering going after a short sale to get immediate equity. I really hate paying this much in rent. Please Help!

jameshogg · Posted: Wed May 04, 2011 12:10 am Post subject:

Hi rgaddy,

It is true that after a short sale, you need to wait for 2-3 years in order to qualify for a mortgage. You can go with the credit union which is offering you a 5/1 ARM if you want to buy a home now. If you build up equity in the next few years, then you will be able to refinance the mortgage.

Thanks

chrisgummerson · Posted: Wed May 04, 2011 8:54 am Post subject:

The CU are generally much more favorable to their members. Hopefully the market will turn, but either way, you have to make a down payment, so you should have some equity to be able to refi on a fixed. Prices in 5 years will HOPEfully rebound....

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