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Breaking News*********If you are a Real Estate Agent:  Kim and I will be talking about this program this week on our coaching calls with Harris Real Estate University Sign up and Log in to the Thursday Call 10:00AM PST

To our clients…you’ll be receiving an email soon.

As our subscribers know…Kim and I are always looking for the latest and greatest news on Short Sales.

I liken this news to “Mans First Steps on The Moon”…Sounds extreme, I know, but this is just the beginning.

A lender from California is offering an FHA 3.5% purchase program for current homeowners that are selling their property on short sale.

The program works like this…

  • The short sale of the current home and timing the purchase of the next home run simultaneous.
  • The day after the “short sale” home sells, the closing of the “new” home takes place.

Yes…this can be a bit tricky with the unpredictable length of the short sale approval and placing an offer on a property on today’s market…however a huge win and step in the right direction for our Short Sale sellers.

(Real Estate Agents) This part is for you…..!

Imagine…you could actually “quadruple end” a sale.

How does that work?

  1. You list short sale #1.
  2. You find the buyer for short sale #1.
  3. You List short sale #2.
  4. You Sell property #2 to the seller of the property #1.
  5. Everyone Wins!

And, the program is currently available in 45 states… (program not currently available in Alaska, Michigan, Missouri, Ohio and Wisconsin).


  • The Smiths bought their home in 2005 for $400,000 with 5% down. It’s now worth $200,000+, but they still owe $390,000. You negotiated to short sell it for $225,000. During the short sale process you got them approved for a new maximum loan of $376,000. Upon closing the short sell of their home, they closed on their new nicer, bigger home for $375,000 and didn’t have to move into a rental apartment for 2 to 3 years.

It doesn’t stop there… Past Short Sale Clients…

If you have sold a home on a short sale and want to buy another home, as long as you meet some additional criteria…paying your rent on time for a year…you may also qualify for this program.

Your asking…what is the criteria?

Here it is:

(1)   Purchase price of new home cannot exceed original (short sell) home loan(s).

(2)   Minimum 640 FICO Credit Score throughout the Short Sell and New Home purchase process

(3)   Adhere to HUD County Limits on New Loans

(4)   No Mortgage “lates” last 12 months, nor through the new home purchase

(5)   There are no income limits

(6)   Non owner-occupant, co-borrowers are allowed

(7)   Competitive FHA lending rates available for this program

(8)   Must qualify with normal income ratios

(9)   3.5% minimum down payment on new home ~ Gifts are OK

Houston….we have lift off!

Sellers…this is huge!

Agents…this is huge!



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