A short sale is a transaction where a seller sells the property for less that what was owed. Short sale is increasingly becoming a common option to sell a house in Santa Clara and rest of the Bay area. If you went through a short sale you could have this question – Do I now qualify for a loan? The below should answer your question:
You are not eligible for a new FHA mortgage if you pursued a short sale agreement on your principal residence simply to
- Take advantage of declining market conditions, and
- Purchase, at a reduced price, a similar or better property within a reasonable distance.
However you could be considered eligible for a new FHA-insured mortgage if
- The proceeds from the short sale serve as payment in full, and
- You were current on their mortgage and other installment debts at the time of the short sale of your previously owned property.
If you were in default on your mortgage at the time of the short sale you are not eligible for a new FHA-insured mortgage for three years from the date of the short sale. There could be some exceptions to this rule under certain extenuating circumstances.
This guidance is effective immediately.
Related post - FHA Loan requirements for San Jose and Bay Area
If you had a short sale and would like to find out what are your options with regard to buying a new home contact me at 408.905.6261. I will be glad to explore all options for you.
Photo courtesy www.Photoxpress.com
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thanks for the posting.
it is hard to ride the market with property that was once over priced. Those who have to short sale they are finding some solace in using rental properties, which is nice for some people who have second homes, or homes they want to sell but can’t right now. Sometimes renters can part of the mortgage price