After the Short Sale

One of biggest questions asked by a client is, "How long do I have to wait to purchase a home after a short sale?" Below is an overview of the required waiting periods after a short sale:

Waiting Period RequirementsNew Loan TypeDown PaymentSpecific Criteria
Level 1NoneFHA3.50%No late payments on credit accounts during short sale (including mortgage)
Level 21 YearFHA3.50%1) 20% decrease in household income due to loss of employment/loss of income out of their control for a 6 month period (loss of income must have caused short sale)
2) HUD approved counseling must be completed 30 days prior to submitting loan application (per Regulation X) and writing offer.
Level 32 YearsConventional20%No additional criteria to standard Conventional guidelines
Level 43 YearsFHA3.50%No additional criteria to standard FHA guidelines

The above are standard guidelines for after a short sale. Please contact us and we can discuss some of the other guidelines and refer you to some local lenders to look at your exact situation.