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How Does a Short Sale Impact Your Credit Score? Since you didnât repay the full debt as agreed, a short sale may significantly impact your credit score. Even if your payments were never late, the mortgage will remain on your credit report seven years from the date it was reported settled or paid.
The FHA will insure loans with credit scores as low as 580; but will also insure loans for borrowers who have no credit score at all. FHA mortgage guidelines also state that home buyers must wait three years after a foreclosure or short sale before buying another home.