Short Sale Seasoning Revisited; Extenuating Circumstances Exceptions

We get so many questions about short sale seasoning that we thought we’d revisit the issue.

FHA financing requires 3 years of seasoning.

Conventional financing always requires 4 years now (used to be 2 in some cases).

Jumbo lenders require 4 or 5 years, depending on the lender.

Our 2nd Mortgage/HELOC lender requires 5 years.

We can sometimes get exceptions for FHA seasoning (for less than 3 years) if borrowers can prove that “extenuating circumstances” made a short sale their only option. Extenuating circumstances include major medical issues or abandonment by an income-earning spouse. Exceptions are rare, however, and the circumstances have to be proven in no uncertain terms.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646