An article written by the current president of the Greater Las Vegas Association of Realtors, Heidi Kasama, was published in the Las Vegas Review-Journal on Sunday. The column, titled On the House, is a question and answer format with the current president of GLVAR answering questions submitted by members of the public. This article, titled “New law extends penalty time for short-sellers,” was written in response to a question from a former home owner who had short sold a house in May of 2012. Under previous underwriting criteria, this meant that the earliest they could qualify for a new conventional mortgage was May, 2014. Typically a conventional loan requires a down payment of at least 10 percent. A new law went into effect in August which changed this two year waiting period to a four year waiting period. There are other options for financing available, but only a VA loan requires the two year waiting period. All other loans require more time to pass after the closing of a short before a borrower will be considered eligible for a new loan. There is one significant exception – borrowers may buy homes at any time after a short sale, foreclosure or bankruptcy with mortgages funded by private investors.
For more information on qualifying for a loan after a short sale, contact us at firstname.lastname@example.org or 702-401-2349.