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) The Buyer is not looking to purchasing a similar or larger home in the same area as short sale; one 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."