FHA One Day Waiting Period After Short Sale?
FHA will waive the waiting period after a short sale, if you can meet some pretty strict criteria.
You can buy again, using an FHA loan, if you are only one day out of closing on a short sale IF:
- You had no mortgage lates before your short sale
- The loan that you short saled was NOT an FHA loan
This is pretty amazing right? I mean, normally there’s a waiting period after a short sale (minimum of 3 years), but this opens a few doors.
Short Sale with No Late Payments
The real challenge here is finding a lender that will approve a short sale if you’ve never been late.
There are many homeowners out there that are struggling to make their mortgage payments now, or have a loan that will adjust soon.
With the economy what it is, there are furloughs, layoffs and pay cuts that can make it challenging to meet your monthly debt obligations as you did with a higher household income.
Responsible homeowners, that continue to make payments on your home even though you own more than what it’s worth, finally have something to look forward to.
While this exception sounds great in theory, qualifying is going to be tough. FHA has never been easy to get an exception from.
Even FHA extenuating circumstances exceptions are very strict and difficult to qualify for. The only acceptable reasons for an exception from FHA is the death, or permanent disability of a primary wage earner.
If you have had a decrease in income, or an adjustment in your payment, and no mortgage lates on a loan that is NOT an FHA loan currently – You may want to explore this option.
At the time I write this, I am told that FHA will allow it, and that as a Lender we can lend under these circumstances, but we have not yet processed a new a new purchase loan under these circumstances.