Posted on: 20th Apr, 2009 09:14 pm
I did a short sale in June of 2008 and escrow closed in October of 2008. I bought my home for 280,000 and short sold it for 130,000 my credit score shows 120 days late. I currently have a 539 credit score (lowest) and 631 (highest) , sorry I can't remember my mid score. I want to buy a home this year but I hear rumors that I have to wait at least 2 years others say 3 and some say 1 year. So how long do I really have to wait? I have a bit down to give if I need to, but I really want to know how much longer until I can buy a home again... Thanks!
Hi Crystal,
If you want to go for a conventional loan, the waiting period to qualify for a loan after a short sale would be 2 years. Had it been a foreclosure, the waiting period could have extended to 4-5 years. However, if you were not more than 60 days late, you could have qualified for a loan almost immediately after the short sale. You may still qualify for a loan, but you will be required to pay a high interest rate and a considerable amount of down payment.
If you want to go for a conventional loan, the waiting period to qualify for a loan after a short sale would be 2 years. Had it been a foreclosure, the waiting period could have extended to 4-5 years. However, if you were not more than 60 days late, you could have qualified for a loan almost immediately after the short sale. You may still qualify for a loan, but you will be required to pay a high interest rate and a considerable amount of down payment.