Short Sale Applicant must present documentation of their full release from the creditor involved. If the creditor is Rural Development, the applicant must contact the Central Servicing Center for evidence of full release. There is not a specified waiting time but the applicant must meet the normal credit, capacity and collateral requirements. The credit report must indicate a zero balance from the creditor.
A satisfactory performance history for one year of the pay-out period and MUST be discharged.
The minimum of two (2) credit scores on RHS loans Minimum score is 640 – Loans without a score are not eligible.
The following are indication of unacceptable credit history and must be carefully investigated:
More than one payment being more than 30 days late in the last 12 months
A foreclosure or Chapter 7 bankruptcy in the past 36 months (not allowed).
See below for Chapter 13 restrictions.
A judgment in the past 12 months Outstanding tax liens, no matter what their age, that are currently delinquent Outstanding collection accounts, no matter what their age, that are currently delinquent.
Previous RHS debt or non-RHS debt that resulted in a loss.
Any outstanding judgment obtained by the United States in a federal court (other than a tax lien).
Rent payment paid 30 days or more past due.
Senior Loan Officer
phone: (502) 905-3708