Fannie Mae Announces Changes to Short Sale Guidelines – Coming Soon!
If you have had to sell short or do a deed in lieu of foreclosure, this information is for you.
Fannie Mae announced that as of August 16th 2014, the waiting period to apply for a loan to purchase or refinance a home, after a short sale or deed in lieu of foreclosure will increase from 2 to 4 years.
At the present time, there is a staggered waiting period which allows the homeowner to obtain a new Fannie Mae conventional loan as little as two years after the completion of a short sale. The down payment or equity required is 20% and a good credit history since the short sale must be established.
However, even though the waiting period will be lengthened on August 16th, there is good news. That is, after the four-year waiting period a borrower will have available all of the standard underwriting guidelines for Fannie Mae, including the ability to finance a home with as little as 5% down. However, if a homeowner can prove that the short sale was due to extenuating circumstances, then the waiting period may still be reduced to two years. But keep in mind that this is not a guarantee and proving extenuating circumstances may not be an easy process.
To learn more about the new guidelines: click link: https://www.fanniemae.com/content/guide/selling/b3/5.3/07.html
If you are in the market to buy a home or had a short sale more than two years ago as of August 16, you need an experienced REALTOR. I’m called to serve you with personal guidance and attention. So, call me today at (301) 502-2669, email me at dwpettis@aol.com or visit my website: www.diana4yourhomesdesire.com and see for yourself!
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
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