Conventional Loan After Short Sale

Conventional Loan After Short Sale in Florida

On a conventional loan, the waiting period after short sale is four years from the closing date, reduced to two years with documented extenuating circumstances. Conventional carries the longest standard waiting period, but its PMI cancels at 20% equity instead of lasting the loan's life. For stronger credit, it is often the cheapest option once the waiting period is behind you. We document any extenuating circumstances that can shorten it.

The short sale waiting period is how long you must wait after selling a home for less than you owed before you can finance another one. In Florida the short sale waiting period is friendlier than a foreclosure: VA is two years, FHA and USDA are three, and conventional is four. On FHA there can even be no waiting period at all if you never missed a payment before the short sale.

A short sale happens when your lender agrees to accept less than the mortgage balance so you can sell and walk away without a foreclosure. Because you cooperated rather than defaulted through foreclosure, the short sale waiting period is generally shorter. The clock runs from the short sale closing date, when the deal recorded and the debt was settled.

FHA has the most generous rule. If you were current on your mortgage and all other accounts for the twelve months before the short sale, FHA may treat you as eligible with no waiting period at all. If you were behind, the standard three-year FHA short sale waiting period applies. We review your payment history to find out which side of that line you fall on.

Conventional loans set the short sale waiting period at four years, dropping to two years with documented extenuating circumstances. As a broker we compare the FHA, VA, USDA, and conventional short sale waiting periods side by side and place your Florida file with the lender whose overlays honor the shortest path.

Waiting periods reflect standard 2026 agency guidelines. Source: Fannie Mae Selling Guide (significant derogatory credit).

Read the full short sale waiting period guide, or compare other loan types: FHA · VA · USDA.