Often I’m asked how soon after I short sale can I purchase a home? Let me start by saying every situation is unique and you should consult with a mortgage professional on your specific situation. However, in general it may not be your score that keeps you from purchasing a home but rather the length of time since the event took place. Industry standards place time allowances on certain mortgage related events.
Know the effects of your decisions BEFORE YOU GO DELINQUENT. There are several different options, each can effect your credit differently. Although there is no magic formula the credit bureaus use to determine score loss, here is a rough guideline as to how many points you can lose with:
90 Days late: 70-135 pts.
Foreclosure, short sale or deed-in-lieu (same effect): 85-160
The higher the score the larger the loss
Compliments of www.BlueWaterCredit.com
For example to obtain a Conventional Loan on a new home after:
Bankruptcy: CH 7 is 4 years if financial mismanagement or two years with extenuating circumstances. CH 13 is 2 years from the discharge date. OR after a
Short Sale, four years are required with financial mismanagement or two years if extenuating circumstances apply-mimimum of 680 FICO score. Or after a
Foreclosure, five years are required if financial mismanagement or three years if extenuating circumstances.
Compliments of Wells Fargo Home Loans