In general, you will have to wait at least 2 years from the date of short sale before you can be eligible for financing the purchase of a home with a conventional mortgage.
FHA does reduce the wait to 1 year if you have extenuating circumstances. (Note: a divorce or the inability to sell a home due to a job transfer or relocation does NOT qualify as an extenuating circumstance.) Veterans who are eligible for a VA loan can be immediately eligible for another VA loan.
However, all lenders have 'overlays,' and can require longer waiting periods - some as much as 5 years! You should speak to several different mortgage lenders and brokers to see what their requirements are. Also bear in mind that requirements can change over time.... more