How long after a short sale can I get a mortgage?

The waiting period after a short sale depends on the loan type and whether you have extenuating circumstances: 1) FHA — 3 years standard, 1 year with extenuating circumstances (job loss, medical, divorce). 2) VA — 2 years standard, 1 year with extenuating circumstances. 3) Conventional (Fannie Mae/Freddie Mac) — 4 years standard, 2 years with extenuating circumstances. 4) USDA — 3 years standard, 1 year with extenuating (case-by-case). 5) Non-QM — no waiting period (1 day after short sale), but requires 10-20% down and higher rates. 6) Jumbo — 5-7 years (lender-dependent). If you have documented extenuating circumstances, you can potentially buy a home in as little as 1 year after a short sale using an FHA or VA loan. Without extenuating circumstances, the shortest standard waiting period is 2 years (VA).

What qualifies as extenuating circumstances for a short sale?

Extenuating circumstances are events beyond your control that caused significant financial hardship, leading to the short sale. Qualifying circumstances include: 1) Job loss or layoff — termination letter, unemployment records, severance documentation. 2) Medical emergency or illness — medical bills, hospital records, doctor letter, insurance EOB. 3) Divorce — divorce decree, separation agreement, proof of income change from divorce. 4) Death of primary wage earner — death certificate, proof of income loss, estate documents. 5) Business failure — business closure documentation, tax returns showing income loss. 6) Natural disaster — FEMA documentation, insurance claims, repair estimates. 7) Mandatory relocation for work — employer relocation letter, listing history showing home could not sell. What does NOT qualify: simply being underwater on the mortgage, strategic default, or choosing to short sale because the home lost value. The key is providing thorough documentation showing the hardship was beyond your control.

Can I get an FHA loan after a short sale?

Yes, you can get an FHA loan after a short sale. FHA has the most flexible post-short sale guidelines: 1) Standard waiting period — 3 years from the short sale date. 2) Extenuating circumstances — 1 year with documented hardship (job loss, medical, divorce, death of wage earner). 3) Credit score — 580+ for 3.5% down, 500-579 for 10% down. 4) Max LTV — 96.5% (3.5% down payment). 5) Property must be primary residence. 6) Must have re-established credit since the short sale. 7) Must have no late payments in the past 12 months. Best FHA lenders after short sale: Rocket Mortgage (5.875%, 580 credit, 1yr extenuating), Guaranteed Rate (5.875%, 580 credit, 1yr extenuating), and New American Funding (6.125%, 580 credit, Non-QM backup). FHA is the best option for most post-short sale buyers due to the short waiting period and low credit requirements.

Can I get a VA loan after a short sale?

Yes, you can get a VA loan after a short sale. VA guidelines for post-short sale: 1) Standard waiting period — 2 years from the short sale date. 2) Extenuating circumstances — 1 year with documented hardship. 3) Credit score — 580+ (lender-dependent, some accept 560). 4) Max LTV — 100% (0% down payment). 5) No PMI (VA funding fee applies — waived for disability). 6) Must have re-established credit. 7) Must have no late payments in past 12 months. 8) VA entitlement must be available (if the short sale was on a VA loan, entitlement may be reduced). VA is the best post-short sale option for eligible veterans because of the 2-year standard waiting period (shorter than FHA 3 years) and 0% down payment. Best VA lenders after short sale: Rocket Mortgage (5.875%, 580 credit), Guaranteed Rate (5.875%, 580 credit), and U.S. Bank (6.000%, 640 credit).

Can I get a conventional loan after a short sale?

Yes, you can get a conventional loan after a short sale, but the waiting period is longer than FHA or VA: 1) Fannie Mae — 4 years standard, 2 years with extenuating circumstances. 2) Freddie Mac — 4 years standard, 2 years with extenuating circumstances. 3) Credit score — 620+ minimum. 4) Max LTV — 95% (5% down) for standard, 90% (10% down) with extenuating. 5) Must have re-established credit with at least 3 tradelines. 6) No late payments in past 12 months. 7) PMI required if LTV > 80%. Conventional loans after short sale are best for buyers who: have 4+ years since the short sale, have 620+ credit, and want to avoid FHA mortgage insurance. Best conventional lenders after short sale: Wells Fargo (6.000%, 620 credit, 2yr extenuating), Bank of America (6.000%, 640 credit, 2yr extenuating), and Chase (6.125%, 620 credit, 2yr extenuating).

Can I buy a house 1 year after a short sale?

Yes, you can buy a house 1 year after a short sale if you have documented extenuating circumstances. Here is how: 1) FHA with extenuating circumstances — 1 year waiting period with documented hardship (job loss, medical, divorce, death of wage earner). Requires 580+ credit, 3.5% down, and re-established credit. 2) VA with extenuating circumstances — 1 year waiting period with documented hardship. Requires 580+ credit, 0% down, and available VA entitlement. 3) Non-QM loans — no waiting period (1 day after short sale). Requires 10-20% down, 500+ credit, and higher rates (7-12%). To qualify for the 1-year waiting period, you must: provide thorough documentation of the hardship, show that the hardship was beyond your control, demonstrate financial recovery (stable income, on-time payments since short sale), and have re-established credit. Best lenders for 1-year post-short sale: Rocket Mortgage (FHA 1yr extenuating), Guaranteed Rate (FHA/VA 1yr extenuating), and New American Funding (Non-QM 1 day).

How does a short sale affect my credit score?

A short sale typically causes a 50-150 point drop in your credit score, depending on your starting score and how the lender reports it. Here is the typical impact: 1) Excellent credit (740+) — drops 100-150 points to 590-640. 2) Good credit (680-739) — drops 70-120 points to 560-610. 3) Fair credit (620-679) — drops 50-100 points to 520-570. 4) Already low credit (below 620) — drops 30-70 points to 550-590. The short sale stays on your credit report for 7 years. However, the impact diminishes over time: Year 1-2 — significant impact (50-100 points), Year 3-4 — moderate impact (20-50 points), Year 5-6 — minimal impact (10-20 points), Year 7 — removed from credit report. To rebuild credit faster: keep all accounts current, open a secured credit card, keep utilization under 30%, and avoid new credit applications. Most borrowers see their credit score recover to pre-short sale levels within 3-4 years with disciplined credit management.

What is a Non-QM loan and can I use it after a short sale?

A Non-QM (Non-Qualified Mortgage) loan is a mortgage that does not meet the Consumer Financial Protection Bureau's Qualified Mortgage guidelines. Non-QM loans offer flexible qualification and are ideal for borrowers who do not meet standard mortgage requirements, including those recently out of a short sale. Key features: 1) No waiting period — you can get a Non-QM loan 1 day after a short sale. 2) Credit score — 500+ (much lower than conventional 620). 3) Down payment — 10-20% (higher than FHA 3.5%). 4) Rates — 7-12% (higher than conventional 5.875-7%). 5) Income verification — bank statement loans available (no W-2 required). 6) DTI — flexible, up to 50%+. 7) Loan types — fixed-rate, ARM, interest-only available. Best Non-QM lenders after short sale: New American Funding (6.125%, 500+ credit, bank statement loans), Guaranteed Rate (Non-QM options), and Angel Oak / Acra (specialized Non-QM). Non-QM is best for buyers who cannot wait for the standard waiting period and have 10-20% down.

Do I need to disclose my short sale to a mortgage lender?

Yes, you must disclose your short sale to your mortgage lender. The short sale will appear on your credit report for 7 years, and lenders will see it during the credit check. Attempting to hide a short sale is considered mortgage fraud. Here is what happens: 1) Credit report — the short sale appears as a settled/paid for less than full balance on your credit report. Lenders will see this during the credit pull. 2) Loan application — you must answer "yes" to the question "Have you had a property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" (short sales fall under this question on many applications). 3) Underwriting — the underwriter will review the short sale and request documentation including the short sale approval letter, closing disclosure, and hardship documentation. 4) AUS (Automated Underwriting System) — the short sale will be flagged by Fannie Mae Desktop Underwriter or FHA TOTAL Scorecard. Being upfront about the short sale allows the lender to properly evaluate your situation and find the best loan program. Hiding it will result in a loan denial and potential fraud investigation.

What documents do I need for a mortgage after a short sale?

When applying for a mortgage after a short sale, you need the following documentation: 1) Short sale documentation — short sale approval letter from the lender, closing disclosure (CD) from the short sale, and the final settlement statement. 2) Extenuating circumstances documentation (if claiming reduced waiting period) — termination letter (job loss), medical bills and records (medical hardship), divorce decree (divorce), death certificate (death of wage earner), business closure documents (business failure), FEMA documentation (natural disaster). 3) Hardship letter — a detailed letter explaining the circumstances that led to the short sale, how the situation was beyond your control, and how your financial situation has improved since. 4) Credit documentation — credit report from all 3 bureaus, proof of re-established credit (3+ tradelines with on-time payments), and explanation of any credit disputes. 5) Income documentation — W-2s (2 years), pay stubs (30 days), tax returns (2 years), and employment verification. 6) Asset documentation — bank statements (2 months), proof of down payment funds, and gift letter (if using gift funds). 7) Rental history — 12 months of on-time rent payments (if applicable). Having all documentation organized and ready will speed up the approval process.

Home>Blog>MORTGAGE

MORTGAGE22 min read2026-08-15

Marcus Reid

Mortgage Strategist & HELOC Specialist · NMLS #1985623, CRMP

Mortgage After Short Sale 2026: Top 10 Lenders Compared (Waiting Periods & Requirements)

Rates Updated: June 27, 2026

A short sale does not permanently disqualify you from getting a mortgage. In 2026, you can buy a home after a short sale with waiting periods as short as 1-3 years depending on the loan type and circumstances. FHA requires 3 years (1 year with extenuating circumstances), VA requires 2 years (1 year with extenuating), conventional requires 4 years (2 years with extenuating), and USDA requires 3 years. The key is rebuilding your credit, documenting extenuating circumstances (job loss, medical emergency, divorce), and choosing the right lender. We compared the top 10 lenders for mortgages after short sale and ranked them based on waiting period flexibility, extenuating circumstances acceptance, credit requirements, and customer satisfaction. Whether your short sale was 1 year ago or 5 years ago, this guide will help you navigate the path back to homeownership. [cta:Compare today's best post-short sale mortgage rates|mortgage]

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Top 10 Mortgage Lenders After Short Sale 2026: Side-by-Side Comparison

We compared the 10 best lenders for mortgages after a short sale across 7 critical factors: minimum waiting period, extenuating circumstances, starting rate, loan types, min credit score, max LTV, and special features.

FHA lenders are generally the most flexible for post-short sale buyers, with 3-year waiting periods (1 year with extenuating circumstances). Compare post-short sale lenders

Rank	Lender	Min Waiting Period	Extenuating Circumstances	Starting Rate	Min Credit	Get Started
1	Rocket Mortgage	3 years (FHA), 1 year extenuating	Yes — job loss, medical, divorce	5.875%	580	Get post-short sale mortgage
2	Guaranteed Rate	3 years (FHA), 1 year extenuating	Yes — flexible documentation	5.875%	580	Get post-short sale mortgage
3	New American Funding	3 years (FHA), 1 year extenuating	Yes — Non-QM options available	6.125%	580	Get post-short sale mortgage
4	Wells Fargo	3 years (FHA), 2 years extenuating	Yes — case-by-case review	6.000%	620	Get post-short sale mortgage
5	U.S. Bank	3 years (FHA), 2 years extenuating	Yes — documented hardship required	6.000%	640	Get post-short sale mortgage
6	Bank of America	4 years (conventional), 2 years extenuating	Yes — strict documentation	6.000%	640	Get post-short sale mortgage
7	loanDepot	3 years (FHA), 1 year extenuating	Yes — flexible underwriting	6.125%	580	Get post-short sale mortgage
8	Better.com	3 years (FHA), 2 years extenuating	Yes — digital documentation	5.990%	620	Get post-short sale mortgage
9	Chase	4 years (conventional), 2 years extenuating	Yes — case-by-case	6.125%	620	Get post-short sale mortgage
10	PNC Bank	4 years (conventional), 2 years extenuating	Yes — documented hardship	6.250%	620	Get post-short sale mortgage

Best Lenders for Mortgage After Short Sale

Nov 1

Rocket MortgageBEST RATE

Best online experience

5.750%

Min credit: 620

Better.com

No lender fees

5.625%

Min credit: 620

Veterans United

Best for VA loans

5.500%

Min credit: 580

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Short Sale Waiting Periods by Loan Type 2026

Waiting periods vary significantly by loan type. Here is a complete comparison of waiting periods for FHA, VA, conventional, and USDA loans after a short sale.

FHA has the shortest standard waiting period (3 years) and the most flexible extenuating circumstances policy (1 year). Compare waiting periods

Loan Type	Standard Waiting Period	Extenuating Circumstances	Max LTV	Min Credit	Get Started
FHA	3 years from short sale date	1 year with documented hardship (job loss, medical, divorce)	96.5% (3.5% down)	580	Get FHA after short sale
VA	2 years from short sale date	1 year with documented hardship	100% (0% down)	580	Get VA after short sale
Conventional (Fannie Mae)	4 years from short sale date	2 years with documented hardship	95% (5% down)	620	Get conventional after short sale
Conventional (Freddie Mac)	4 years from short sale date	2 years with documented hardship	95% (5% down)	620	Get conventional after short sale
USDA	3 years from short sale date	1 year with documented hardship (case-by-case)	100% (0% down)	640	Get USDA after short sale
Jumbo	5-7 years (lender-dependent)	3-5 years with documented hardship	80-90% (10-20% down)	680	Get jumbo after short sale
Non-QM	1 day (no waiting period)	No extenuating circumstances needed	80-90% (10-20% down)	500	Get Non-QM after short sale

Extenuating Circumstances for Short Sale: What Qualifies?

Extenuating circumstances can significantly reduce your waiting period. Here is what qualifies and how to document it.

The key: provide thorough documentation including termination letters, medical bills, divorce decrees, and a hardship letter explaining the situation. Document your hardship

Circumstance	Qualifies?	Documentation Required	Waiting Period Reduction	Get Started
Job loss / layoff	Yes — most common qualifying circumstance	Termination letter, unemployment records, severance documentation	FHA: 3yr to 1yr, VA: 2yr to 1yr, Conv: 4yr to 2yr	Document job loss
Medical emergency / illness	Yes — major medical event	Medical bills, hospital records, doctor letter, insurance explanation of benefits	FHA: 3yr to 1yr, VA: 2yr to 1yr, Conv: 4yr to 2yr	Document medical hardship
Divorce	Yes — if it caused financial hardship	Divorce decree, separation agreement, proof of income change	FHA: 3yr to 1yr, VA: 2yr to 1yr, Conv: 4yr to 2yr	Document divorce
Death of primary wage earner	Yes — severe financial impact	Death certificate, proof of income loss, estate documents	FHA: 3yr to 1yr, VA: 2yr to 1yr, Conv: 4yr to 2yr	Document death
Business failure	Yes — if self-employed business closed	Business closure documentation, tax returns showing income loss	FHA: 3yr to 1yr, VA: 2yr to 1yr, Conv: 4yr to 2yr	Document business failure
Natural disaster	Yes — FEMA-declared disaster	FEMA documentation, insurance claims, repair estimates	FHA: 3yr to 1yr, VA: 2yr to 1yr, Conv: 4yr to 2yr	Document disaster
Relocation for work	Sometimes — if home could not sell and short sale was necessary	Relocation letter from employer, listing history, market analysis	Case-by-case review	Document relocation
Simply underwater / strategic default	No — does not qualify as extenuating	N/A — strategic defaults do not qualify	No reduction — standard waiting period applies	Check eligibility

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Credit Rebuilding Timeline After Short Sale

Rebuilding credit after a short sale is critical. Here is a timeline showing what to do and when, along with expected credit score recovery.

Most borrowers see credit recovery within 2-4 years after a short sale if they follow a disciplined credit rebuilding strategy. Start rebuilding credit

Timeframe	Action	Expected Credit Score	Mortgage Eligibility	Get Started
Day 1-30	Get credit report, dispute errors, keep all accounts current	620-660 (initial drop from short sale)	Non-QM only (1 day waiting)	Get credit report
Month 1-6	Open secured credit card, keep utilization under 30%, pay all bills on time	640-680	Non-QM with 10-20% down	Open secured card
Month 6-12	Add installment loan (credit builder loan), maintain low utilization	660-700	FHA with extenuating (1yr), VA with extenuating (1yr)	Get credit builder loan
Year 1-2	Continue on-time payments, avoid new credit applications, keep utilization under 10%	680-720	VA (2yr standard), FHA with extenuating	Check credit progress
Year 2-3	Consider adding second credit card, monitor credit score monthly	700-740	Conventional with extenuating (2yr), USDA (3yr approaching)	Monitor credit
Year 3-4	Short sale falls off some scoring models, credit should be fully recovered	720-760	FHA (3yr standard), USDA (3yr), approaching conventional (4yr)	Get pre-qualified
Year 4-5	Short sale impact minimal, excellent credit achievable	740-780	Conventional (4yr standard), all loan types available	Get conventional mortgage
Year 7+	Short sale removed from credit report	760-800+	All loan types, best rates available	Get best rate mortgage

How to Get a Mortgage After Short Sale: Step-by-Step Guide

Getting a mortgage after a short sale requires careful planning and documentation. Here is a step-by-step guide to navigating the process.

The key: rebuild your credit, document your hardship, choose the right loan type, and work with a lender experienced in post-short sale mortgages. Get your post-short sale mortgage

Step 1: Obtain your short sale documentation — closing disclosure, short sale approval letter, and hardship documentation
Step 2: Calculate your waiting period — determine the date of your short sale and which loan type you qualify for
Step 3: Gather extenuating circumstances documentation — termination letter, medical bills, divorce decree, or other proof of hardship
Step 4: Pull your credit report from all 3 bureaus (Equifax, Experian, TransUnion) and dispute any errors
Step 5: Rebuild your credit — open a secured credit card, keep utilization under 30%, pay all bills on time
Step 6: Save for down payment — aim for 3.5% (FHA), 5% (conventional), or 0% (VA/USDA if eligible)
Step 7: Get pre-qualified with at least 3 lenders from our top 10 (soft credit pull, no impact)
Step 8: Compare offers — look at rate, waiting period flexibility, and extenuating circumstances acceptance
Step 9: Write a hardship letter — explain the circumstances that led to the short sale and how your situation has improved
Step 10: Close on your new home — with proper preparation, you can buy again in as little as 1 year after a short sale

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Today's Best Mortgage Rates

Updated November 1, 2026

Lender	Rate	APR	Fees	Best For	Action
Veterans United	5.500%	5.641%	$0	VA loan specialist	Check Rate
Navy Federal CU	5.500%	5.628%	$0	No PMI, military only	Check Rate
Better.com	5.625%	5.765%	$0	No lender fees	Check Rate
New American Funding	5.625%	5.780%	$1,095	FHA specialist, fast closing	Check Rate
Rocket Mortgage	5.750%	5.890%	$1,295	Best online experience	Check Rate
CrossCountry Mortgage	5.750%	5.895%	$1,500	Non-QM, complex files	Check Rate

Rates shown are illustrative. Actual rates vary by credit score, location, and loan details.

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Marcus Reid NMLS #1985623, CRMP

Mortgage Strategist & HELOC Specialist

NMLS #1985623 and CRMP. Former HELOC division manager at PNC Bank ($2B portfolio). 11+ years in home equity lending. Featured on CNBC.

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