After a Short Sale, how long does it take to qualify for a mortgage?
How soon can you qualify for a mortgage after a Short Sale?
It is possible to qualify to purchase a home after a short sale, but waiting periods will apply and vary between USDA, FHA, VA, and Conventional loans.
Depending on the type of loan program, some waiting periods are longer than others. In today’s video, I will compare the differences between USDA, FHA, VA, and Conventional loans and explain how soon you can qualify for a mortgage after a short sale.
Plus, if you have recently been denied for a mortgage because of a previous short sale, please take advantage of our FREE Second Opinion Service (SOS)
Short Sale Guidelines
A short sale is considered a pre-foreclosure activity, and over the years my team and I have seen many of them occur due to unforeseen circumstances outside of the homeowner’s control. Once a short sale has been completed, waiting periods will determine how quickly you are able to requalify for a mortgage.
Listed below are the published short sale qualifying guidelines for Conventional, VA, FHA, & USDA loans:
When qualifying for a conventional loan after a short sale, Fannie Mae and Freddie Mac have different guidelines.
- Fannie Mae requires 4-years from the short sale completion date.
- On the other hand, Freddie Mac has no waiting period after a completed short sale provided the loan receives an eligible response through Loan Prospector which is their automated underwriting system.
- VA guidelines treat a short sale similar to a foreclosure.
- They require a 2- year waiting period along with re-establishing credit.
- FHA guidelines for qualifying after a short sale require a 3-year waiting period.
- The waiting period begins on the date of the transfer of title.
- USDA guidelines to qualify after a short sale require a 3-year waiting period.
Please be wary of lenders stating they can get an exception for less than the standard waiting periods discussed above. While it can be possible, there is limited opportunity for these type exceptions and are truly on a case by case basis.
We are Here to Help
Remember, if you need help or have questions, that is exactly what we are here for.
Just call 800-806-9836 x280 or email SeanS@MPLX.org to discuss your scenario. My team and I are known for returning calls, replying to emails, and responding to your messages!