Standard rule of thumb is 3 years from the short sale if you had lates within 12 months at the time of sale.
Here are the guidelines lenders work with regarding short sales:
A borrower is not eligible for a new FHA-insured mortgage if he/she pursued
a short sale agreement on his/her principal residence simply to
â€¢ take advantage of declining market conditions, and
â€¢ purchase a similar or superior property within a reasonable commuting
distance at a reduced price as compared to current market value.
Borrower Current at the time of Short Sale
A borrower is considered eligible for a new FHA-insured mortgage if, from
the date of loan application for the new mortgage, all
â€¢ mortgage payments on the prior mortgage were made within the month due
for the 12-month period preceding the short sale, and
â€¢ installment debt payments for the same time period were also made within
the month due.
Borrower in Default at the time of Short Sale
A borrower in default on his/her mortgage at the time of the short sale (or preforeclosure sale) is not eligible for a new FHA-insured mortgage for three
years from the date of the pre-foreclosure sale.
Note: A borrower who sold his/her property under FHAâ€™s pre-foreclosure
sale program is not eligible for a new FHA-insured mortgage from the date
that FHA paid the claim associated with the pre-foreclosure sale.
Exception: A lender may make an exception to this rule for a borrower in
default on his/her mortgage at the time of the short sale if the
â€¢ default was due to circumstances beyond the borrowerâ€™s control, such as
death of primary wage earner or long-term uninsured illness, and
â€¢ a review of the credit report indicates satisfactory credit prior to the
circumstances beyond the borrowerâ€™s control that caused the default.