When can I buy again after a short sale?

There are many diffferent scenarios but basically after a short sale or deed in lieu of foreclosure a buyer will have to wait 3 years from the completion date to buy again using an fha loan.  The wait period may not be required if the borower is current on the mortgage and not taking advantage of declining market conditions.  To buy with a conventional loan the buyer must wait 7 years with less than 10 % down, or 2 years if they have 20% down.  A buyer with a VA loan must wait 2 years.   So, experiencing a damaging credit event doesn’t mean you will never be eligible for a mortgage again.  If you experienced extenuating circumstances, your wait time may be even shorter. Things such as loss of a job, medical bills, or death of a wage earner are such circumstances. Divorce or the inability to sell a house after a job relocation do not qualify.  There are many reputable credit repair agencies available to help repair credit if necessary.

Advertisement