Short Sale and Reasonable Distance

[RedLight]

"Borrowers who pursued a short sale agreement on their principal residence to take advantage of declining market conditions and purchase a similar or superior property within a reasonable commuting distance are not eligible for a new FHA insured mortgage."

The above was taken from the FHA's website and was wondering if anyone knows what a "reasonable" commuting distance is? If we completed a short sale in August and waited until next July to apply for an FHA loan, does anyone see any issues? We will have been out 3.5 years post discharge and our mortgage is current with no lates.

[HHM]

It's a crap shoot. If you stay current on the mortgage up through the short sale (the catch 22 is that the bank will probably not approve a short sale while you are current on your mortgage since most lenders require a hardship), then yes, you can get an FHA mortgage 1 year after short sale.

But it is discretionary.

[debee]

As for the reasonable commute, FHA hasn't set the distance. They leave it up to the underwriter. In some regions of the country hour-long commutes are standard.

[dspii]

It's a crap shoot. If you stay current on the mortgage up through the short sale (the catch 22 is that the bank will probably not approve a short sale while you are current on your mortgage since most lenders require a hardship), then yes, you can get an FHA mortgage 1 year after short sale.

But it is discretionary.

1 year after short sale? Please explain, all the research I performed states that if you are current on your mortgage at the time of the short sale, you can apply for an FHA mortgage the next day with no penalty. Of course the reasonable distance thing applies.