Credit Report Error Sinks Short-Sellers Bids for a Mortgage
For a short sale, a borrower is eligible for conventional loan financing 24 months post-short sale at 80 percent loan-to-value or lower. But for a foreclosure, a three-year window is required to get a mortgage again with as little as 3.5 percent down on a primary home with an FHA loan. Seven years must have passed for the homebuyer to qualify for a conventional loan post-foreclosure (or, four years with extenuating one-time economic hardship circumstances). So the addition of chapter 5, 8 or 9 flags the previous short sale on the credit report as a foreclosure, thereby making the loan ineligible for conventional financing in a shorter time frame.
Source: AOL Real Estate
No comments:
Post a Comment