Get FHA Loan After Short Sale In California is a post from: FHA,VA and Conventional Home Loans in all 50 States

In the last few years as property prices have dropped and unemployment has risen in California, many homeowners have had to do a short sale in order to sell their homes.  On the other hand, the fall in prices in California has also made it an extremely attractive time to get back into the market to buy a home for those that have had previous short sales (or bankruptcies and foreclosures).  In this post I will discuss getting a FHA loan after a short sale in California.

In the vast majority of cases, most home buyers in California will have to wait three years after the close of their short sale to be eligible for 3.5% down FHA financing on their new home.  The three year wait period begins on the date the deed to the property transfers out of the sellers name to the new buyer.  If you are unsure of this date, send me an email or call and I can look it up for you.  Once you hit this three year point, you are free to apply for a new FHA loan.

There is an exception where you can get a FHA loan in California immediately after a short sale.  It is rare that borrowers qualify for this exception.  Two factors have to be present for this to happen:

• #1 You must have not missed ANY mortgage payments leading up to your short sale
• #2 You must have had to sell because of a job relocation or other extenuating circumstance that can be documented (such as health issue).  The extenuating circumstance cannot be financial stress or job loss, this will not be accepted.

So as you can see there is hope that you can buy again after your short sale in California.  Give us a call at 858-922-7899 if you think you fit the exception or if you are nearing the three year point after your short sale.

Here are some highlights of FHA home loans in California:

• FHA loan down payment is only 3.5% and this can be a gift from a relative
• FHA loan limits in California go up to $729,750 in many parts of California such as San Francisco, San Jose, Los Angeles, Orange County and close to this amount in San Diego.
• FHA loan interest rates are still extremely low and near record lows
• FHA loan credit score does not have to be perfect.  Give us a call if you don’t think you have good enough credit as we are experts in analyzing and helping borrowers raise credit scores

Regards,

Rob Chomentowski

Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)

858-922-7899

homeloan8@gmail.com

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