Typically it takes two years to buy a home with financing after going through a short sale. I haven't heard of a company willing to do it before then. If the seller is willing to work with you to draw up a lease-to-own contract then you should be able to move forward in a year if your scores are in the 700's. Feel free to call me with any questions.
Harmony Real Estate, Inc
2 Winnhaven Drive
Hudson NH 03051
(603) 620-3428 Cell
(603) 883-8840 X12 Office... more
80/20's are very hard to come by these days. Sounds like a FHA 203K Loan might be something good to check into. It is also called a Renovation Loan. But don't let that term scare you! The renovation portion can be almost anything- from new windows or kitchen appliances, to additions or even a complete renovation from the foundation up. From a few thousand to many thousands and then some!
It's a great product where it takes into account what the value of your home will be AFTER the work has been completed. So in this case you would refinance what you owe, plus the costs to do the renovations, and that would be compared to what the value of your home would be after the work. Often times, you are creating equity that you did not have before.
Not every lender does these, and many do them poorly! My company has a deicated 203K division that makes borrowers(and other parties involved) very comfortable with the transaction and process. Please feel free to contact me for more info.