how long it takes someone who did a short sale to buy a new home?

Asked by Protegeaugustave, Saint Louis, MO Tue Dec 11, 2012

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Rich Homer, Agent, NAPLES, FL
Sun Apr 14, 2013
Best next action is to ask a local Mortgage Broker by clicking "Find a Pro" in the main menu at the top of this website.
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Dan Brassil, Agent, Saint Louis, MO
Sun Jan 13, 2013
From my experience, it would be 3 years but you also would wan to contact and speak with a reputable lender for my exact details.
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Bill Wilmeri…, Agent, Saint Louis, MO
Thu Dec 13, 2012
There are a lot of factors that are involved.

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:

FHA Loan
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.
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Dale Weir, Agent, Chesterfield, MO
Tue Dec 11, 2012
A short sale will affect your credit for 3 years, while a foreclosure or deed in lieu will affect your credit for 5-7 years.

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
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Sarah Foley, Agent, Saint Louis Missouri 63109, MO
Tue Dec 11, 2012
I think the answer is case by case, depending on the circumstances. In general, at least 1-2 years; however long it will take to improve the credit scores from the damage that occurred during the short sale period. A lender is able t o answer regarding your specific circumstances. Tom Sinak with USA Mortgage 314.494.1215.
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Mike Knoll, Agent, Palm Springs, CA
Tue Dec 11, 2012
The generally accepted answer to this question is 2 years. However, I am aware of situations where the time has been less when other credit is excellent and the person's situation has changed enough. If you are seriously interested in buying again soon it is wise to seek the advice of a reputable mortgage broker.
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