How Will a Short Sale Affect My Credit and Future Homebuying?

A short sale is less harmful to your credit than a foreclosure. Your ability to buy another home depends upon several factors, including your credit. Generally, banks want to see that you can repay the loan before granting a mortgage. If the problems that forced the short sale are behind you, you might be able to buy a new home after 12 months of good credit. If you seek to buy a home using a government-backed program, such as FHA or VA, the waiting period is typically two years. The minimum waiting period on a foreclosure is seven years.