Special Financing Programs for Short Sales
Welcome back to our blog. Today we talked with Matt Weaver from PMAC Lending about the short sale process from a financier's standpoint. The rules have changed a little bit and in some cases, buyers don't have to wait as long to purchase another home after their short sale.
The amount of wait time between a short sale and buying another home depends on the loan product. With FHA financing, it's wait period is 3 years. However, they have implemented a new product called the "Going Back to Work" program that allows you to qualify to purchase a new home after only 1 year. To qualify, you need to be able to prove that your income dipped by at least 20% during the onset of the financial crisis and that you are back up to your original income now.
With conventional financing, things are a little different. The wait time is 4 years, but with a 20% down payment, you can qualify in just 2. Extenuating circumstances such as divorce, illness, or death can also trigger a 2 year wait period.
If you have any questions, please feel free to give us a call. We would be more than happy to help.