If there was no default, you would have been able to get an FHA loan right away (see FHA below) depending on your credit score and other credit factors (a 660 credit score would be good enough for most lenders).
Almost all mortgage lenders at a minimum follow FHA guidelines for an FHA loan and either Fannie Mae or Freddie Mac for a conventional loan. There guidelines are as follows:
â– Can purchase right away with no mortgage default (FYI: Most lenders will not do a short sale unless you are in default.)
â– 3 year wait if in default at the closing
â– Reduced wait if the borrower has re-established good credit and can show extenuating circumstances
Fannie Mae Loan
â– 2 year wait if the borrower puts 20 % down
â– 4 year wait if the borrower puts between 10% to 20% down
â– 7 year wait if the borrower puts less than 10% down
â– 2 year wait if the borrower can show extenuating circumstances and puts more than 10% down
Freddie Mac Loan
â– 4 year wait before being able to get a loan
â– 2 year wait if the borrower can show extenuating circumstances
Some of the lenders will have more restrictive guidelines. It would be best to check with various lenders.
At best you will have to wait 2 years if you can put 20% down and 3 years if you want to go FHA with only 3.5% down, unless you can show extenuating circumstances. Extenuating circumstances are not defined and will vary from lender to lender and possibly from underwriter to underwriter.
I have seen some individuals who had VERY high credit ratings before a short sale (in the 700"s) buy again the same year, but for most it takes about 3 years. Start working NOW with a HUD counselor (You can find them at Beyond Housing, Better Family Life or NECAC) to do the necessary repairs to your credit and get you in a position to buy. If any special programs come up that might help you to buy sooner, they will know about them as well.
Good Luck, Dale