Will I be able to buy another home after a San Diego short sale?

The short answer is “Yes, after a San Diego short sale you will be able to purchase another home.”

The big question is “When?” And the answer is: “It depends.”

One of the benefits of a short sale vs a foreclosure is that the time is much shorter.

However, confusion abounds with regard to how long you’ll have to wait before you can apply for a new San Diego home mortgage. Fannie Mae and Freddie Mac each have their own guidelines, as do FHA and VA.

FHA guidelines state that borrowers who were in default on their previous mortgage will not be eligible for a new FHA loan for 3 years. If they were not in default on their home mortgage or any other debt, they may be eligible in 2 years. But… depending upon the circumstances, they “could” be eligible almost immediately.

VA regulations state that you must wait 2 years.

Fannie and Freddie have relaxed their guidelines, dropping the wait time from 4 or 5 years down to 2 years – maybe.

It has been our experience that most people will wait 3 years before being granted a new home mortgage loan of any kind. However, since each person’s situation is unique and the guidelines are filled with “if’s, and’s, and but’s,” you should consult with a reputable mortgage lender to see just where you stand.

The first and most obvious requirement for getting a new San Diego home loan sooner is that your credit is good. If during your short sale you kept your mortgage payments and all other obligations current – and if you have continued to pay all your other obligations on time – you’ll get a new loan sooner.

As with any loan, your debt to income ratios and the stability of your employment will play a part in the decision.

The amount you can pay as a down payment will affect your chances with Fannie Mae and Freddie Mac. Those with a 20% down payment will get a loan sooner. Those with less than 10% down will have a much longer waiting period.

Your reason for the short sale also affects the timing of a new loan. If you can demonstrate that your short sale was the result of circumstances beyond your control, you’ll get a new loan sooner.

The good news is that a short sale will not destroy your chances of owning a San Diego home in the future. You can sell short, regroup, and move on to a brighter future.

We’re short sale specialists, with hundreds of successful short sales to our credit.

We can help you too – but only if you make the first move.

So do it today – call 619-929-1413 or write td@tomdunlap.com.


Please note that the information provided on this San Diego short sale page is generic, academic information used for general information purposes and may not be construed as or relied upon as a promise for a specific outcome.

This site provides information about real estate, law, income taxes and credit scores as relates to borrowers in distress, short sales and similar situations. The site is designed to help users safely cope with their own needs. Information is not the same as advice — the application of law or regulations to an individual’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer, tax adviser or other specialist if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation. The models in photographs accompanying the testimonials on this website are used for illustrative purposes and are not a personal endorsement.