How long will it take for my credit to recover from a short sale?

Under FHA & USDA, you need to wait 3 years from the date of the short sale.. VA requires 2 years, and Conventional requires 2 years with 20% down.. Your credit will improve greatly after a short sale since the scoring models for credit don't treat the short sale as they do a foreclosure or other types of severe derogatory credit. So your credit score wouldn't take that big of a hit, but you still have the mandatory waiting periods before you can apply.. And you can apply for an FHA loan after 3 years, even though the short sale was FHA.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

If the loan on the home you short sold was an FHA loan and FHA took a loss, then your three-year time clock starts from the date FHA paid the claim, not the date the sale closed escrow. As for how long it will hurt your credit depends on what the rest of your credit profile looks like. If the loan was the only thing that went delinquent, and you have several other pieces of credit that you use modestly and keep current, then it could be as little as 90 days. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

first, why are you short selling your home ?? FHA is a govt loan.. There are other options to do... email me your details privately if you prefer ... yourloanpartnerforlife@live.com linda

a short sale is the same as a forclosure when it comes to credit.. mim of 3 yrs for a fha loan, 5 to 7 yrs on a conventional loan to get another loan. what i am asking , is why your short sold your home... that makes a difference with the fha loans.. linda

A short sale and a foreclosure are pretty much looked at the same as far as credit is concerned. You will have to wait for 3 years from the short sale date to get another FHA loan.

The initial blow to your credit may or may not be significant if you continued making your mortgage payments on-time all the way up to when you had the short sale. The waiting period for you to apply for certain loan programs are set in stone; however, just because the time has elapsed doesn't necessarily mean that you are credit worthy. The sooner you start on cleaning up your credit and establishing new credit, you will be one step closer to bolster your credit to A status.

It can be a complicated situation, but call me to discuss further on possible ways to regain your credit. We have helped many files post short sale, and I can definitely improve your score, the length of the process will vary though depending on the specific facts. Contact me at Nathan@MorCredit.com or (917)684-6047 and we can discuss further.