Mortgage eligibility timeline

[laurannm]

Hi all!

We are short selling our house and are finally closing in two weeks! Both mortgages were discharged back in 2008, but was is the waiting period for a new mortgage after a short sales closes (FHA, conventional, etc)? Is it still 3 years or two? We stopped paying both mortgages almost a year ago

Thanks!

[justbroke]

It is 3 years from foreclosure. More specifically, it is three (3) years from the point that the buyer's name is on the title. If you have an extenuating circumstance, FHA/USDA may consider a new mortgage after a year or two from foreclosure.

Yes, I wrote foreclosure, but foreclosures, deed-in-lieus and short-sales are considered the same thing for purposes of seasoning.

For conventional, it could be 7 years. Please remember, that the FHA guidelines are "minimums" and the lending bank could put other requirements and require more seasoning. This is why you must shop-around an FHA.

[laurannm]

Thanks!