Home Mortgage News

How Soon Can I Purchase After a Short Sale?

About Short Sales

The facts about how long buyers must wait before obtaining financing.

A common question home buyers have today is: How long must I wait before obtaining financing after a short sale? Below is an overview by loan type of this important information.

It depends on the loan you want to get to purchase real estate. For instance on a Fannie Mae loan the waiting time is 3 years but may go as long as 7 years depending on the loan to value ratio.

If you’re going after a FHA loan, 3.5% down. You’ll have to wait 3 years after a short sale to be able to qualify for a loan. Quick Tip: There is no time restriction if the borrower made all their monthly payments during the short sale and 1 year prior to the short sale.

If you want a VA loan, you will have to wait 2-3 years. There are no definite rules yet but assuming it will follow the other loan types

If you would like more information of financing timelines visit our other article:

Want to Purchase a Home After a Short Sale, Foreclosure or Bankruptcy?

Guidelines may change according to Fannie Mae, Freddie Mac or government authorities. It is always best to speak with a real estate professional about your real estate concerns. If you have real estate legal questions, it is best to speak with a real estate attorney. If you do not know one, contact us and we can provide a non partial list of local real estate attorneys.

If you have any questions about these timeframes or if you would like additional information, please call us today.

By Diego Loya

Diego Loya is a Realtor - Broker at Home Living Real Estate Brokerage, a Orange County full services real estate company. Over the past 12 years, Diego has helped homeowners sell and buy their homes. He's loves educating and empowering real estate consumers. You can find him on Google, Facebook and Twitter.

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