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Here are some general guidelines important to sellers of short sales who are looking to get back into a home again.

FHA loan guidelines are a bit lenient than conventional guidelines:

• Foreclosure/Short Sales only need to wait 3 years after a foreclosure has been completed
• Chapter 7 Bankruptcy only need to wait 2 years after charge off
• Chapter 13 Bankruptcy only need 1 year (everything needs to be paid off)

Conventional Loans will take a longer time to obtain financing at about 4 years.  A credit score of 680 or higher is typically a general rule of thumb to re-establish credit and satisfactory for: foreclosures, bankruptcies and short sales.

Veteran Administration loans (VA) will take up to 2 years after a foreclosure, short sale or bankruptcy.  The borrower will need to provide proof that there is no outstanding debt and credit must be re-established along with an explanation letter.

Some lender may not even allow a mortgage within 7 years if you are applying with the same lender that the foreclosure or short sale happened with.

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