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Can I Get a Mortgage after a Short Sale?



Qualifying for a mortgage after a short sale is decidedly more difficult but not impossible.

More Info: Qualifying for a mortgage after a short sale is decidedly more difficult but not impossible.  The average waiting period for a new mortgage is three years, but will depend on a variety of factors including the status of your payments during the sale and how much your credit was damaged.

What Was the Status of Your Mortgage Payments?

In most cases, the average waiting period to get a new mortgage after a short sale is three years. You may be eligible for an FHA loan immediately if you made all the payments on the previous mortgage on time, and the lender accepted the proceeds from the short sale as payment in full. If you were in default on the loan prior to the short sale, you are not eligible for an FHA loan for three years from the date of the pre-foreclosure sale.

How Is Your Credit Rating?

If you had bad credit before you did a short sale, afterwards, your credit is likely much worse. A short sale usually does significant damage to credit. With bad credit, it is difficult to get a loan. The worse your credit is, the longer it will take to get another mortgage because you need some time to repair your credit. If you had excellent credit before, your credit didn’t fall as far, and it may be easier to get a mortgage.

Are You Prepared to Pay a Higher Rate?

If you had a short sale and are hoping to get a new mortgage in a couple of months, be prepared to deal with high interest rates. Lenders now know that you are a risky borrower and are less willing to lend to you. You probably won’t be able to borrow as much and you will most certainly be quoted a much higher interest rate. If you are able to build up your credit over time and have a stable financial life otherwise, in time, you can get a better interest rate in most cases.



Mortgage Payments Sending You Reeling? Here’s What to Do.” Federal Trade Commission. N.p., n.d. Web. 2 Nov. 2010.

“Short Sales and Short Pay Offs.” DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. N.p., 16 Dec. 2009. Web. 2 Nov. 2010. <>.

“How Long Before You Can Get A Mortgage After A Short Sale – North Scottsdale Real Estate – The Precision Team.” The Precision Team – Excellence in Real Estate Sales, North Scottsdale Real Estate, Phoenix Real Estate. N.p., n.d. Web. 2 Nov. 2010.

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