The question that many Camarillo homeowners who are short selling their home have is, “when will I be able to apply for a mortgage again?” Of course this is a great question and it all depends on how the short sale will affect your credit score and what factors are involved in short selling your Camarillo home. Circumstances such as the number of months you have missed your mortgage payments, unpaid property taxes, unpaid monthly HOA fees (if any), and your initial credit score all have an impact on your credit score after a short sale.
Another factor that you need to consider after short selling your Camarillo home is which lending institution you will use to obtain your new loan.
Fannie Mae requires that you wait a period of 24 months from the day the short sale was completed before you can apply for a new loan.
FHA has a more strict policy regarding mortgage loans after a short sale.
- If you short sale your Camarillo home in order to take advantage of the declining real estate market and are looking into purchasing another home in the same area for equal or higher value, then you are Not eligible for an FHA loan.
- If you have defaulted on your mortgage while short selling your home, you have to wait 3 years before you can apply for an FHA loan.
The key to buying a home and obtaining a new mortgage, whether you have or have not had a short sale in your past history, is to keep a vigilant eye on your credit score.
In the case of a short sale your mortgage lender will most likely report the unpaid balance of your loan as debt forgiven. Nonetheless, please talk to your accountant regarding the tax consequences associated with short selling your home.
If you have any questions as to how to short sale your Camarillo home or to see if you are eligible for a new home loan please feel free to contact me, Mana Tulberg: 805-443-8898 Or you might want to consider subscribing to Camarillo Home Finder for up to date articles on Life and Real Estate in Camarillo.
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