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How soon can you qualify for a mortgage after a Short Sale?

May 5th, 2017 by Sean Stephens

How long does it take to qualify for a mortgage after a Short Sale?

With USDA, FHA, VA, or Conventional loans their Short Sale waiting periods vary, and while some are longer than others, in today’s video I will explain the differences between each program side by side.

Remember, if you need help or a have question that is what we are here for, so just call or email to discuss your scenario because we are known for returning calls, replying to emails, and responding to your messages. Now, wouldn’t it be nice if everyone did that!

How soon can you qualify for a mortgage after a Short Sale

In many cases a Short Sale does not occur due to financial mismanagement, but instead due to third party events and circumstances that were outside of the homeowner’s control.

With that being said, once a short sale has been completed, waiting periods will apply with how quickly you can be able to re-qualify for a mortgage.

As a general overview and starting point, here are the standard short sale qualifying guidelines for Conventional, VA, FHA, & USDA:

Qualifying for a conventional loan after a short sale, Fannie Mae and Freddie Mac have different guidelines.

  • Fannie Mae requires 4 years from short sale completion date
  • On the other hand, Freddie Mac has no waiting period after a completed short sale, but does require an Accept response through Loan Prospector which is their automated underwriting system.

When attempting to qualify for a VA loan after a short sale, VA guidelines will treat a short sale as similar to a foreclosure and require a two year waiting period along with re-established credit.

FHA guidelines for qualifying after a short sale require a three year waiting period which begins on the date of the transfer of title by short sale.

While there is a limited opportunity under USDA guidelines to qualify for a short sale under their three year waiting period, USDA generally requires three years from the date of the short sale.

When discussing the potential of qualifying for a mortgage after a short sale, beware of lenders stating they can get an exception for less than the standard waiting periods discussed above.  While it can be possible, the guidelines are specific and leave little room for these type of exceptions.

How soon can you qualify for a mortgage after a Short Sale

If you have recently been denied for a mortgage because of previous short sale, please take advantage of our free Second Opinion Service (SOS) which is great for both new pre-qualifications and existing transactions.


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