Asked by lydia  |  Submitted August 18, 2015

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.

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  Answers  |  2

August 21, 2015

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.

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August 21, 2015

thanks, I'll check out that link.

$commenter.renderDisplayableName() | 10.25.20 @ 07:23

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