How a Short Sale Affects Your Credit Score (And How to Rebuild)

One of the biggest homeowner concerns about a short sale is how it will impact their credit score. While it does cause a drop, a short sale is still far better than a foreclosure—and you can rebuild your credit faster.

How Much Will a Short Sale Hurt My Credit?

The exact impact depends on your overall credit history, but a short sale typically lowers your credit score by 50-150 points. In comparison:

❌ Foreclosure: Drops credit 100-160+ points & stays on record for 7 years

❌ Bankruptcy: Can drop credit 150-250 points & stays on record for 7-10 years

A short sale’s impact is less severe and allows you to recover more quickly.

How Long Until I Can Buy a Home Again?

🏡 FHA Loan: 3 years after a short sale

🏡 Conventional Loan: 4 years after a short sale

🏡 VA Loan: 2 years after a short sale (for veterans)

In contrast, a foreclosure typically requires 7 years before you can qualify for a conventional loan.

How to Rebuild Your Credit After a Short Sale

✔️ Pay all remaining debts on time (late payments hurt your score)

✔️ Keep credit card balances low (ideally below 30% of the limit)

✔️ Use a secured credit card to rebuild your payment history

✔️ Monitor your credit report & dispute any errors

Protect Your Credit & Plan for Your Future!

A short sale may impact your credit, but it’s a smarter choice than foreclosure—and recovery is possible! The sooner you start, the sooner you can rebuild. Let’s discuss your options today!

📞 Call/Text: 469-855-0199

📧 Email: Dawn@ElevatedRealtyGroup.net