If during your short sale process you had no late payments, both FHA and FNMA will approve the loan, the problem is that to get the short sale through almost everyone needs to be late on the mortgage.
If you were late on the mortgage, then with FHA it is 3 years,
With conventional it is 2 years, but you most likely will need 20% down because you wont get mortgage insurance.
Be prepared to have a written explanation for the short sale.
Also there is always hard money which is 12% rate with 30% down + major closing costs.
Finally, the owner carry financing then everything is negotiable, most likely they do not want to do this unless they are upside down though.
FHA financing normally requires THREE years from the short sale; HOWEVER, IF 1) the mortgage payments were made on time within the 12 months prior to the short sale, and 2) you aren't looking to purchasing a similar or larger home in the same area as short sale you can actually buy the very NEXT DAY after escrow closes on your Short Sale.
Conforming loan guidelines state a minimum of TWO years and 20% down; however, if the short sale was due to documentable "extenuating circumstances" (divorce, medical, job loss, death of a wage earner, etc.) then you only need 10% down.
Extenuating Circumstances "are nonrecurring events beyond the borrowerâ€™s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations."
After a short sale, the general rule is that you will be eligible to buy a home FHA within 2 years from the date of close of escrow. conventional, is 3 years. I have closed on both scenarios with buyers who had a previous short sale.
The key is that you cannot be late on any thing during this period. Lenders are very strict about even a 30 day late as per my loan agent who did these loans for my buyers.
Also make sure that you have some one competent doing your short sale and that the paperwork is handled correctly. Ensure to keep the closing statement, all approval letters and the 593 E escrow document. You also have to ensure that the 1099 C that the lender sends to you after the short sale for tax filing is handled correctly thru a CPA.
Wish you luck.
Head of short sales Dept,KW Encino