Short sale has a negative impact on your credit. Though the impact is much more less than that of a foreclosure, still it does hurt your credit. Thus, it becomes problematic for you to get a mortgage after short sale. However, there are various other factors which may be considered by the lender while lending you a mortgage. Still, if you really want to avoid all of these hassles, it would be better for you to try and maintain the mortgage payments from the beginning. If that isn’t be possible for you, you can try to refinance your mortgage so that you are not required to lose your home anyhow. For more information on mortgage, please visit: http://www.mortgagefit.com/.

Getting mortgage after short sale

Majority of people short selling their home remains confused on this that if they can at all get a mortgage after the short sale of their home. There have been various kinds of changes in the mortgage market and in case of the different short sale, foreclosure and such other options. Thus, many are confused on the actual state of things.

However, you should know that under such a circumstance; when you have done a short sale on your home; you can still get a mortgage. Fannie Mae along with the FHA has recently changed the requirements of the short sale situation and getting a mortgage after that. As has been said before, it depends on various factors based on which you may be able to get a new home loan.

In case you are planning to do a short sale on your home and if you are still current on your mortgage, you can continue to remain current on your mortgage till the short sale is done. This will make it easier for you to get a new home loan after doing the short sale as your credit won’t lower that much. But, in case you don’t have the ability to go on making the mortgage payments till the short sale is done, better not worry as you may be able to get new mortgage in a couple of years.

Fannie Mae allows the borrowers to get a new home loan just after 24 months from closing date of the mortgage. However, in order to qualify the new loan within 24 months, you will be required to have the affordability to make 20% down payment. If you aren’t able to make the 20% down payment and if you have the ability to make only 10% down payment, you may have to wait for four years or 48 months and may be more. Yet again, if you are able to prove that you are in real financial crisis resulting from either job loss or complex health problems, and may be divorce, you may be able to get a mortgage after two years from the date of short sale.