"2 years is the answer ONLY if you are a vet and did not short sell a home with a VA loan on it. The correct answer is with private money there is no waiting but it is expensive, FHA is 3 years, conventional is 7 years. However there are exceptions."
That's not even close to the correct information! The only correct thing in that was that you can purchase immediately with private money. The ACTUAL waiting periods for purchases after short sales are as follows.
Fannie Mae will allow you to purchase a home 2 years after a short sale with a 20% down payment and 4 years after with a 10% down payment, with re-established credit. If there were documentable, extenuating circumstances, you may be able to buy after 2 years with 10% down.
FHA has a 3 year waiting period after short sale, however, you may be eligible for a new FHA loan immediately after a short sale if:
o All mortgage payments due on the prior mortgage were made within the month due for the 12 month period preceding the short sale and,
o All installment debt payments for the same time period were also made within the month due.
Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to:
o Take advantage of declining market conditions, and
o Purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
Borrowers in default on their mortgage at the time of the short sale are not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale.