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I have a 609 credit score trying to purchase a 160k house.
My credit score should go up drastically within 30 days, however, the short sale house wants to start escrow now. At the end of the 30 day escrow should I again run my credit and see if I qualify for an FHA loan…or is this even a possibility?

Or should I ask for a 90 day escrow with the idea that before the close of escrow I would qualify for an FHA loan?

Ideally I am trying to qualify for an FHA loan.
Worst case scenario: I accept the high interest rate now…move into the home…can I qualify for an FHA mortgage after (say, 3 months) I’ve already begun payments on another interest rate….sort of refinancing to become an FHA loan?
any advice is greatly appreciated! 😉

1 Thought on Can I buy a short sale house now and refinance with an FHA in 30 days?
  1. Reply
    Meggerz
    September 28, 2012 at 12:15 pm

    1. There is no guarentee that your score will jump high enough. Paying off your debt is great 🙂 but late payments and collections will not remove off your CR that quickly. Be wary of services that charge to “quickly raise your score” – they can often do more damage than good.

    2. You can refi at any time as long as your current loan has no pre-payment penalty. Look at your Good Faith Estimate, and on the front page it will clearly state if you have a pre-payment penalty or not (usually the 3rd item in the checklist).

    3. My personal opinion is if you want this house, purchase it and watch your credit. When you score is high enough, refi as long as there is no penalty. Remember you WILL pay closing costs for a refi so keep that in mind. Also keep in mind to keep assets stable (savings accounts, retirement accounts) at least 60 days before a refi and to have proof of income.

    **IMPORTANT: Your FHA refi will require an FHA appraiser to come out and make sure the house lives up to FHA standards. This includes no broken windows, no chipped or peeling paint, no dangerous doors, proper staircases and banisters, etc. FHA loans do not go towards fixer uppers. Not sure what kind of home you are buying, but as a short sale it may have issues and if it does, fix them before the FHA appraiser comes out and “fails” your home.

    Good luck!

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