If you use an FHA loan to buy a property that is also currently under an FHA short sale, the seller (via HUD) may allow up to a 3% credit toward your closing costs. If you use a non-FHA loan, this credit is usually capped at 1%.
If you previously sold a home through a short sale and now want to buy a new one with an FHA loan, different rules apply: Rules for FHA Loans Following a Short Sale buying a short sale with an fha loan
You must intend to live in the home as your primary residence. FHA loans cannot be used to buy short sales as investment properties or rentals. Buying a New Home After Your Own Short Sale If you use an FHA loan to buy
FHA loans require the home to be safe, sound, and secure. Many short sale properties are sold "as-is," but if an FHA appraiser flags issues like peeling lead-based paint, broken windows, or a roof with less than two years of life, the loan won't close until those are fixed. FHA loans cannot be used to buy short
You cannot have a personal or business relationship with the seller. HUD (the Department of Housing and Urban Development) requires a signed affidavit confirming you are a neutral third party.