Refi after short sale
Refi after short sale
Hello, I am trying to do a refi on my condo. I have a conventional IO Arm, 10 year at 5.75% for $91,500. I also have an equity line for $54,812 at 3%. Would like to consolidate the first and second into a 30 year fixed, or 15 year if possible. To complicate things, I completed a short sale of an investment property back in July of this year. I keep reading that there is a waiting period of 2-5 years in order to qualify for a refi on another property, but was wondering if there were any exceptions/products out there that I might take advantage of, Thank you.
4 Answers
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1
No, there are no such exceptions. As a short sale hurts your credit score, you actually require waiting for a certain period of time, usually 2-3 years in order to repair your credit and then get a refinance loan.
1
You will not be able to qualify for a mortgage so soon after a short sale. If not 2 years, you will have to wait for a minimum of 1 year in order to refinance another loan after short sale.
1
Yes, FHA has eased the lending criteria after a short-sale this year and so, you can apply for a refinance after 1 year. Still, you might encounter a lot of troubles in securing a refinance loan since your property does not have any equity at the moment and there are other factors that may cripple the loan approval process in your case. However, you may consult a mortgage broker and try to strike out a suitable deal later on.
1
After the short sale your credit takes a serious hit and it needs hard work to see improvement of your credit score. This definitely is going to take time and so it wouldn't be possible to obtain new credit soon.