So, $580,000 price putting $200,00 down would be a $380,000 loan amount at a 65% loan to purchase price. $380k loan amount is ok for conventional financing and the wait time in the scenario above would be 2 years provided you put at least 20% down.
There is an FHA option that has no waiting period, if you can prove 1.)no late payments on any mortgage and consumer debts within the 12 months period preceding the short sale. 2.) you are not taking advantage of a declining market condition.
You might also consider a USDA loan. Standard guidelines for shortsale:
- 3 year waiting period from the date it was completed.
- Less than 3 years may be considered with acceptable extenuating circumstances, such as: o Loss of Job o Delay or reduction in government benefits o Increased expenses due to illness Circumstances surrounding the adverse information must have been temporary in nature and beyond the Borrowers control. Reoccurrence must be highly unlikely. Or the adverse action or delinquency was the result of a refusal to make full payments because of the defective goods of services or as a result of some other justifiable disputed relating to the goods or services purchased and/or contracted for.
Also, my Bank will do a purchase or refinance loan 1 day out of foreclosure or short sale in any of theses states: AZ, CA, DC, FL , HI, IL, MD, MT, NV, NY, NC, NJ, OR, SC, VA, WA..but not Texas :( Please contact me if I can be of service.
You’d want to check the max FHA loan size for the county you’re looking in, as they vary and it could be as low as 271,000. In addition, both the upfront and monthly MIP (mortgage insurance premiums) would still apply, even with 20% down, and they are quite steep. From what you’ve said, however, your previous short sale should be a non issue, given your down payment. Glad to help if you’d like, I write loans nationally. Thanks, Ted