Looking to buy after a short sale w/no late payments and extenuating circumstances

The guideline you are referring to was for owner occupied homes (Principal Residence).. Your short sale was on a owner occupied home that was converted to a rental... by trying to do the right thing, it cost you the ability to use this FHA loan product... There is really no additional paperwork other than a copy of the previous deed and a letter of explanation... the way the mortgagee letter is written, this guideline regarding principal residence or not is a gray area... there might be a lender out there that will interpret it in your favor, however most lenders will err on the side of caution, and disallow it.. With conventional, you can purchase with 10% to 20% down after 2 years, with VA, you can purchase right away... but to be sure, you should go and apply rather than guess.. The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Hi. I just reviewed the FHA underwriting guidelines for Short Sales and you do met the FHA guidelines, provided all mortgage payments and all other installment loan payments were current for the 12 months previous to the sale. What you need to watch for is if there was an insurance claim paid out on the loan that was sold short. Then the waiting period could be as much as 3 years from the date the claim was paid. It doesn't sound like there would have been an insurance claim, but I wanted to make sure you realized this guideline, as well. It ultimately is up to the underwriter as to whether or not they feel comfortable with your scenario. I am here in Ohio and would welcome the opportunity to talk to you further about it. I can be reached at 614-310-7520. I am looking forward to talking with you. Pat McCarthy, Stonegate Mortgage Corp.

William is right on the money...good luck

William is correct here. We are a local banker but underwrite to our investor guidelines which would be classified as a "big bank". There are certain scenarios that allow us banks to underwrite prior to the 2-3 year window but you rarely see this get approved. Underwriters always err on the side of caution when they have to sell the loan to their investor versus running the risk of them not purchasing the loan and the lender has to end up servicing the loan. I dont agree with William in regards to contacting a local banker/broker as being an advantage. You had a short sale in Florida not Cleveland, OH. Guidelines/overlays dont apply to certain areas. If i were you i would go on Zillow,com, explain your situation and only the lenders who think they can underwrite this will call you back. That way you expose yourself to many different lenders that may be able to get that done.

In today's lending world, underwriters are just not willing to stretch outside of the box very far. Although you could make the argument that you were doing the right thing, it is going to be difficult to find any underwriters willing to take this chance. Your two options are to try to get a loan, but you will only be disappointed, like you currently are, and wait out your penalty period. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950