If you’ve been in the unfortunate position of being on the Selling side of a Short Sale our hearts go out to you. We are sure it was a difficult loans places that direct deposit decision to make, but now that it’s behind you maybe you’re ready to buy a new house in North Carolina?
We had a call this morning from a guy who left Florida in e to Raleigh, North Carolina with a new job. The family is now settled, they love the area, and he called with this question.
There are some important features to the way a USDA Loan Underwriter will look at your mortgage application that differ from other mortgage loan programs. Because the USDA Home Loan program does not require a down payment it’s inherently more risky than other programs, like FHA, and the credit underwriting for the program is more conservative as a result.
Frankly, depending on the Bank you had your other mortgage with they might report it as a Short Sale, and they might not
I’ve looked online, and I’ve found forum comments on Zillow and Trulia that state you can get a USDA Loan with a shorter waiting period… but in North Carolina, the USDA Loan Underwriters will generally NOT approve a loan with less than 3 years from the date the title transferred. So for the guy this morning the Short Sale was in and we are well past the 36 month period. Continue reading “The USDA Loan waiting period after a Short Sale is 36 months from the date of transfer”