Fannie Mae Updating Waiting Periods after Short Sales

For several years now, Fannie Mae has allowed buyers that previously were involved in a short sale or deed in lieu of foreclosure to buy again using Conventional financing in as little as two years with a twenty percent down payment and a minimum 680 credit score. However, after August 16th of this year, Fannie Mae is updating the waiting period after short sale and pre-foreclosure sales.

Fannie Mae is planning to end their early purchase program. The updated program has a longer waiting period of four years but requires a lower down payment and credit score standard. What this means for buyers is that after August, homeowners that experience a short sale or deed in lieu of foreclosure are able to buy again using Conventional financing, four years after having their name removed from title. After this waiting period, buyers can qualify using the standard Conventional qualifying requirement of a five percent down payment and a minimum 620 credit score.

In addition, if a homeowner can prove with strong documentation that the short sale was due to an extenuating circumstance such as loss of employment, then the waiting period may still be reduced to two years.

If you’d like more information about Fannie Mae’s updated waiting periods or would like to learn about qualifying for a loan in your area, please contact me. – Lisa

www.LisaBray.com

602-762-3691
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