Many people who live in Fort Collins or other cities throughout the United States are under the impression that if they had a short sale on their home in the past, than they would have to wait a few years to just to be eligible to get a mortgage again. Although it is a little more difficult to get a loan because of various restrictions that now apply to an individual because of the short sale, it is definitely not impossible.
So now you are asking “How?”
Simple…compromise, according to Lenders, there are guidelines set up to help homewowners purchase again when using FHA Financing.
The purchaser must fit guidelines.
- Maintain good credit throughout the short sale process
- The purchase must be inferior in size (you cannot go buy same size house at lower price)
- The purchaser needed to relocate to a different area ( different zip code is fine)
- The purchaser must qualify for a loan
- The purchaser must be able to come up with FHA Down payment requirements to purchase.
- Talk with a lender to see what your options are. Then call a local Fort Collins Realtor you trust to help you find another place.
The question now comes as to how you get a mortgage after you have had a short sale in the past.
The answer to this question is for you to compromise and use the Federal Housing Administration to get a new loan because they want to help individuals get a new loan and move into a new house. However, there are several guidelines that must be met in order to be eligible for one of these mortgages.
Throughout your short sale process, you must have maintained good credit. This means that besides your short sale, you shouldn’t have any other bad reports on your credit report.
When you decide to purchase a new home after a short sale, you must choose a home that is smaller than the house you originally had. This simply means that if you short sold on a 2,000 square foot house, you must purchase a house that is below 2,000 square feet.
The FHA also requires that you need to relocate to a new area from where your original house was (a different zip code will work). In order to get a new mortgage, you must be able to pass a credit check to qualify for the loan itself and have a proper down payment as indicated by the FHA. If you believe that you qualify for the different necessities as set by the FHA or you may qualify, it’s important to contact a lender to know what options you have and what options may become available to you.
It can be very stressful when someone in Fort Collins is balancing between either doing a short sale or leveraging their credit in order to cover their mortgage that they cannot afford. It’s important to understand that because of changes in the economy, the government has made more options available to mortgage holders. Consider talking to a Fort Collins realtor to help you decide if a short sale would be the best option for your financial future. Although it may not seem like the best choice, it may be the best way you can save your financial future without getting into further debt.