Good News For Home Buyers in Grand Rapids, Michigan.

By
Mortgage and Lending with FHA and VA Home Loans, Jumbo Loans, 0 Down Loans

Going forward, borrowers who previously experienced a deed-in-lieu of foreclosure won't have to wait as long to get approved for a subsequent mortgage.

Last week, mortgage financier Fannie Mae changed its required waiting period (the amount of time that must elapse after a pre-foreclosure event) to reflect current market conditions.

In the past, borrowers had to wait four years after a deed-in-lieu of foreclosure to get approved for a mortgage with Fannie Mae.

That time period has been slashed to just two years, though the maximum loan-to-value is limited to 80 percent. After four years, the maximum LTV climbs to 90 percent.

Pre-foreclosure sales and short sales, which Fannie categorizes as the same event, a property sold in lieu of foreclosure for less than the total amount owed, will also have a two year waiting period with the same LTV requirements.

Additionally, certain extenuating circumstances will allow borrowers to get loans after just two years at up to 90 percent LTV.

In all cases, borrowers must re-establish their credit, meaning they must meet minimum credit score requirements and eligibility requirements.

Fannie Mae and Freddie Mac currently require a five-year waiting period after foreclosure to re-establish credit; the waiting period is only three years for an FHA loan and two years for a VA loan.

Posted by

______________________________________________________________________________________________________

Jennifer Tabor-Storre Mortgage Specialist Grand Rapids, MI.Jennifer Tabor-Storre  25+ years experience in the Real Estate and Mortgage industries in greater Grand Rapids, West MI. area.  Please contact Jennifer at 616-437-9268 for any of your mortgage needs.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Michigan Kent County Grand Rapids
Groups:
Active Rain Newbies
Realtors®
Real Estate Rookie
Fraiche Aire
Greater GRAND RAPIDS, MI Real Estate
Tags:
credit
fha
loans
forclosure
short sales
home buyers
va

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
38,523

Jennifer Tabor Storre

FHA and VA Home Loans, 0 Down Financing, Jumbo Loans
Ask me a question
*
*
*
*
Spam prevention

Additional Information