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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.
1 You cannot apply until the three-year waiting period ends and you must have re-established your credit in the meantime. 2  For 2015 loans, the FHA requires a 640 minimum credit score. 3  VA Loans: You may apply for a VA loan TWO YEARS after a short sale as long as you meet the VA's eligibility criteria.