Rule Change For Home Owners With Short Sale History

– Posted in: Phoenix Real Estate

If you are a former home owner who has had a short-sale be aware that the timeline is about to change for when you can try and re-qualify for a new home loan.

On August 16, 2014, conventional loans guidelines will require a 4 year waiting period on short-sales regardless of how much a borrower’s down payment is.

So if you have had a short sale in your past but have been thinking about trying to re-qualify for a home loan, be sure to get pre-qualified for a home loan before Aug 16,2014 and plan to close on your home by September 15, 2014.

The rule previously has allowed a borrower with a short-sale to purchase a home with conventional financing with a 20% down payment after two years or with a 10% down payment after 4 years. 

After August 16, 2014 all time period restrictions for people with a short-sale in their past will be increased to 4 years.