Mortgage After A Short Sale
A short sale or deed in lieu does not end your chances. FHA generally looks for three years and Fannie Mae four, and FHA can skip the wait if you were current before the sale.
What you need after a short sale
Each item below is a requirement of FHA, Fannie Mae, or at least one other program we offer.
- On FHA, three years since the title transferred in the short sale.
- Or, on FHA, every mortgage payment made within the month due in the 12 months before the short sale.
- On FHA, installment debt paid on time in that same 12 months.
- On a Fannie Mae loan, four years from the completion date, or two with extenuating circumstances.
- For an early exception on FHA, documented extenuating circumstances beyond your control and good credit reestablished since the sale.
- On at least one VA program, no wait may be needed if your payments were not affected before the sale and you kept in contact with your servicer.
Three years on FHA
No wait if you were current
Fannie Mae after four
Deed in lieu counts too
VA may not need a wait
Non-QM from 12 months
Can You Buy Again After A Short Sale
Yes. How soon depends on the loan type and how you paid before the sale.
A short sale is a sale that brings in less than you owe, where the lien holders agree to release their liens and forgive the rest. On FHA, you generally need three years from the date title transferred, and a sale within three years goes to an underwriter for review by hand.
FHA can skip the wait if every mortgage payment in the 12 months before the short sale was made within the month due and your installment debts were paid on time. Documented extenuating circumstances beyond your control can also qualify if you have reestablished good credit since the sale. After a foreclosure instead? See our mortgage after foreclosure page.
Fannie Mae needs four years from the completion date of a short sale, deed in lieu, or mortgage charge-off, or two years with documented extenuating circumstances. At least one non-QM program allows a loan 12 months after the sale on a purchase or rate-and-term refinance.
Why choose Saxton for a mortgage after a short sale
For homeowners who sold short or signed over a deed and are ready to buy again.
Three Years On FHA
FHA generally looks for three years from the date title transferred in the short sale.
No Wait If You Were Current
On FHA, you can qualify sooner if every mortgage payment in the 12 months before the short sale was made within the month due and your installment debts were paid on time.
Fannie Mae After Four
Fannie Mae needs four years from the completion date of the short sale or deed in lieu, or two years with documented extenuating circumstances.
Deed In Lieu Counts Too
A deed in lieu is when you give the deed back to the lender in exchange for a release. On FHA it follows the three-year foreclosure rule, and on Fannie Mae the four-year rule.
VA May Not Need A Wait
At least one VA program may not require a waiting period if your payment history was not affected before the short sale or deed in lieu and you stayed in contact with the servicer.
Non-QM From 12 Months
At least one non-QM program allows a loan 12 months after a short sale on a purchase or rate-and-term refinance. Others wait two years or longer, and at least one jumbo program waits seven.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about buying again after a short sale or deed in lieu.
Generally three years from the date title transferred. You may qualify sooner if all mortgage payments in the 12 months before the sale were made within the month due and installment debts were paid on time.
On a Fannie Mae loan, four years from the completion date, or two years with documented extenuating circumstances.
On FHA, a deed in lieu follows the three-year foreclosure rule. On a Fannie Mae loan, it follows the same four-year rule as a short sale.
At least one VA program may not require a waiting period if your payment history was not affected before the sale and you kept in contact with the servicer.
On a Fannie Mae loan, it is when a creditor decides there is little or no likelihood the mortgage debt will be collected. It follows the same four-year waiting period.
Not on FHA, except in narrow cases where the loan was current at the divorce and your former spouse received the home.
Yes. At least one program allows a loan 12 months after the sale on a purchase or rate-and-term refinance, and others wait two years or longer.
Find out what you qualify for
Tell us when your short sale or deed in lieu closed, and we will show you the programs that fit.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.