How long do you have to wait to refi (FHA) an investment home after a short sale on another home?
Purchased home in 2010. Want to get rid of PMI (home now has 20% equity) and get a lower rate on a refi. The short sale occurred in Dec. 2012.
Hi Lydia, the general wait time to qualify for another mortgage loan after a short sale is 2 to 5 years. However, this also depends on your current credit score and recent credit history - meaning, have you built your credit back up since the short sale and is your score high enough right now to qualify? Be prepared to explain why the short sale happened as well. Ultimately, the only way you'll know if you qualify is to apply with a mortgage broker and provide all necessary documentation so they can go to work for you and find you an approval or they can tell you after the application and credit pull that you'll need to wait and for how long / help you formulate a plan to get where you need to be to qualify. I would suggest a live person you can sit down with, as opposed to the internet. | 08.20.15 @ 23:57
If I understand your scenario, you have an investment home, secured by an FHA mortgage, that you want to refinance after a short sale less than 3 years ago on another investment property.. To remove the PMI, you'd have to refinance to a conventional loan. The minimum waiting period to obtain a conventional loan following a short sale (on any property) is 2 years (for loans with 20+% equity) and 4 years for loans without 20% minimum equity. Here's a link to the Fannie Mae selling guide that addresses that issue: https://www.fanniemae.com/content/guide/selling/b3/5.3/07.html
Hope that helps. | 08.21.15 @ 03:55
thanks, I'll check out that link.
| 08.21.15 @ 16:17