[quote=new to SD]Thanks for the reply. I can put 20% – 25% down. I need to borrow $500k to $700k and my Short sale was finalized in September last year.[/quote]
Guidelines are constantly changing, it has not even been a year yet, which is probably why your credit score is still low.
There are things that you can proactively do to raise your score.
You may need to wait 2 years from date of short sale to sign a contract to purchase again.
It could be difficult to qualify for a new loan for awhile, regardless of your down payment.
Your score is ALWAYS going to be a factor for a conventional loan. low 600’s is a huge difference in rate, you may need at least a 620 middle score.
I’d like to know what you are doing to raise your score. If you contact me privately I can discuss this with you in confidence.
It may also depend on whether your short sale was voluntary OR hardship.
General guidelines:
Short sellers normally have to wait at least two years after closing the short sale to qualify for a mortgage.
The minimum wait period and down payment requirements to get a conventional loan after a short sale are:
•Two-year wait with a 20 percent down payment.
•Four-year wait with a 10 percent down payment.
•Seven-year wait with less than 10 percent down payment.
Loans above $546,000 can be more difficult to qualify for too.
