Getting a Conventional Loan After a Short Sale In California is a post from: FHA,VA and Conventional Home Loans in all 50 States
What many former California homeowners don’t realize is that conventional loan guidelines only require a two year wait after a short sale to apply for a conventional loan. That means homeowners that had short sales in 2009 and earlier are now eligible to get back into the market and buy.
Conventional guidelines do require buyers to put 20% down to qualify for a loan two years after a short sale. For 10% down you would have to wait four years after a short sale. FHA loans are available three years after a short sale and VA loans (only for veterans and active military) two years after a short sale. Here is a recap:
| Loan Type | Number of years after short sale needed to qualify |
| Conventional loan 20% down payment | Two years |
| VA loan zero down (veterans and active military) | Two years |
| FHA Loan 3.5% down payment | Three years |
| Conventional loan 10% down payment | Four years |
So the wait is not that long to get back into the market after a short sale. Here are some compelling reasons to get back into the market:
- Home prices are now 50% less than their peak 4-5 years ago in many areas of California
- Interest rates are at sixty year lows
- The two above bullet points make for a record affordability where a house payment is often lower than rent
So don’t hesitate to call 858-922-7899 or email homeloan8@gmail.com if you have any questions about getting approved for a home loan after a short sale in California. Below are some other highlights of conventional loans in California:
- Homepath mortgage available on Fannie Mae owned properties offer as low as 3% down payment with no mortgage insurance or appraisal
- 5% down payment available on conventional loans with no up front mortgage insurance and less monthly mortgage insurance than FHA loans
- 10% down available to $796,000 in San Diego, and to $875,000 in Los Angeles, Orange County, San Francisco, San Jose and Oakland
Best Regards,
Rob Chomentowski
858-922-7899, homeloan8@gmail.com
Sr. Loan Officer
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