FHA will lend after the 37th month when you sell your home on a short sale. There are guidelines that HUD has put in place to allow for a borrower with extenuating circumstances to purchase immediately after short sale and obtain FHA financing. However at this time no investor is originating these loans. HUD does not lend money or originate mortgages, they just insure them. The mortgagee/investor is the one taking the risk on the mortgage and there is no appetite for that risk at this time.