There will be a couple of factors that will determine if you can get financed in 5 months and if so what rate will be. So let's start with getting on first base. First, I am considered expert in helping people purchase after a short sale, and I am telling with certainty depending on how the previous lender reported his mortgage loan tradeline(s), it CAN & WILL make a difference.
I have written about the notorious I-9 MOP encoding on consumer's credit reports that you don't see. We lenders are the only ones who can see this on your credit report. The good news is I have a team that knows how to handle this. I can assure you, that if your Husband's credit shows a Pre-Foreclosure due to rolling late mortgage payments 120 days plus, you will have an issue getting an AUS approval.
Therefore unless we do a Portfolio Product (not FNMA) or your husband's loan is manually underwritten it may be a problem. If I were you I would look into as soon as possible. You can check yourself by going on to http://www.annualcreditreport.com
and seeing if the remarks "Foreclosure Started, or Repo, etc." shows on the tradeline(s).
If it does, you may need to some special handling and I would start massaging the credit asap so once you hit that 24 month mark, you'll be ready to go. Let me know if you have any questions, you can contact me direct as I don't follow each question after I leave my comments.
Best of Luck!