Fannie Mae Policy Changes

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Fannie Mae released the following policy changes effective August 1st:

Bankruptcy Policy:

Chapter 7:      4 years from the date of discharge or dismissal  

Chapter 13:    2 years from the date of discharge or 4 years from dismissal date  

Foreclosure:   5 years from the date of completion (sale date). In addition, for up to 7 years after sale date, a minimum up 10% down and a minimum FICO of 680 required to purchase a principal residence. Purchase of a second home or investor property is not allowed.

Comments (3)

Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

I am so happy to see that Fannie finally recognizes a chapter 13 as being different than a 7.  for Years they were looked at as the same thing.  I personally think that chapter 7s should go away completely and there should only be chapter 13 as an option.

Aug 12, 2008 02:38 AM
Justin Ukaoma
Vizion KC - Kansas City, MO
Kansas City Real Estate Investments

Those look like some pretty strict changes thanks for the quality information.

Aug 12, 2008 02:39 AM
Jim & Maria Hart
Brand Name Real Estate - Charleston, SC
Charleston, SC Real Estate

I'm glad to see the changes.  I'm also glad to see that Fannie Mae is not allowing those who have been through foreclosure to purchase any investment properties.

Aug 12, 2008 05:22 AM

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