MortageDepot wants real estate professionals to know that home buyers with a short sale on their credit reports can qualify for financing to purchase a home. MortgageDepot is a mortgage broker with loan officers specializing in working with all borrowers, including those with challenges.
Freddie Mac loans are available to borrowers with a short-sale history. Criteria for qualifying for a loan include the following:
- The financing must be for the purchase of a primary residence;
- Maximum loan-to-value ratio cannot exceed 90 percent; and
- At least four years must have elapsed since the completion of the short sale.
Borrowers seeking a loan to refinance an existing mortgage must be at least four years out from their short sale. Freddie Mac underwriting guidelines do not permit borrowers to receive cash back in a refinance.
At MortgageDepot, we use the Freddie Mac Loan Product Advisor to evaluate the credit of a borrower with a history of a short sale. If the Loan Product Advisor returns with an acceptance, the loan can proceed without additional documentation no matter when the short sale took place. This is only one example of how underwriting to the guidelines allows MortgageDepot to help our customers obtain financing.