Buying after short sale

FHA will allow a borrower to purchase another home immediately after a short sale IF their mortgage was not delinquent in the last 12 months.

If there were any late mortgage payments in the last 12 months, BUT the mortgage has been brought current at the time of short sale, the FHA will allow purchase after one year.

If mortgage is past due at the time of short sale, the buyer must wait 3 years. However, exceptions can be made to the 3 year waiting period if the cause of the short sale is deemed to be related to circumstances beyond the buyer's control.
Examples include: medical illness, loss of primary wage earner's job, death, etc.