Of course you can. It is, however, a function of time and money. If you have cash, naturally you can purchase a home without worrying about the past short sale situation. Most of you asking this question probably aren’t relying on a full cash purchase, and what you’re really looking for is information on your loan eligibility.
Yes. You can buy a home after a short sale, but here’s the deal. The circumstances surrounding your short sale will often determine what type of loan product you can obtain and what your rate will be. Most of the loans in this country are backed by Fannie Mae or Freddie Mac. When you close your loan, your mortgage broker or banker will often be following underwriting guidelines set by these two entities because your loan will be sold to them. If you don’t meet their standards, you don’t get a loan. Just like in any lending situation, the higher the risk for the investor, the higher the interest rate you’ll pay. In other words, the investor will want a larger return on the money they loan you (remember, the reason they loan you money is to make money) and they will want to transfer more of the risk to you.
What I would suggest is that you contact one of the three preferred lenders that I have posted here on my site and begin a dialog with them asking them where you stand. You don’t have to have your credit run, that’s not what I’m suggesting, at least not at first to get a clear picture of what’s available, but you do need to simply ask a few questions.
You’ll need to provide them with the date that your short sale was settled so they have a clear understanding and can weigh that date against the timelines provided by the various investors to whom they sell the loans after your house has closed escrow.