3 year wait after short sale.

[KylePK]

I'm sure this has been asked before but I couldn't find the exact answer I am looking for. We owned a house, during the start of Covid we ended up having to move half way cross the country leaving our house in Florida. We tried selling and just had a difficult time, we ended up short selling it in sept of 2021. Do we have to wait til 3 years from the exact date to apply for a mortgage or can we apply for a mortgage a few weeks before since we wouldn't close on it til after the 3 year? Also, what date do they go by for the 3 year wait? Thank you so much for your help!

[ShanetheMortgageMan]

The 3-year guideline is for FHA loans, in that situation the FHA case # can't be ordered any sooner than 3 years from the short sale date.  The FHA case # can be assigned once an offer on a home is accepted and the loan officer enters the property address on the loan application. 

This means you could get pre-approved to purchase prior to the 3-year mark and just hold off on making offers until a day or two of the 3-year anniversary so the lender can pull the FHA case # right after your offer is accepted, since that is a very important starting step.

If you were never late on the mortgage (or any installment debts) for the 12 months leading up to the short sale then you'd be eligible right now, no wait is required.

Also, if the short sale was due to extenuating circumstances, such as illness or death of a wage earner, medical bills that insurance didn't cover, etc. then typically it's just a 1-year wait after the short sale since FHA wants you to have re-established credit.  The inability to sell the home due to a job transfer or relocation to another area does not qualify as an extenuating circumstance.

[KylePK]

Do you know if there is a way we can find the FHA case number date? We are just going by the date on our credit report, I don't know how accurate that is.

[VAMortgageGuy]

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@KylePK wrote:

Do you know if there is a way we can find the FHA case number date? We are just going by the date on our credit report, I don't know how accurate that is.

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The case number is something we (lenders) pull through FHA Connection. We typically pull it after you've signed the disclosure package which is sent out once you have a contract on home. This is why some lenders say you have to wait to "apply" until your short sale hits the 3 year mark.

[ShanetheMortgageMan]

Was the mortgage on your Florida home an FHA loan or was it conventional?