Fannie Mae Cuts Wait for Delinquents Looking to Buy

Fannie Mae recently announced a change in policy that will shorten the minimum waiting period to be eligible for a new Fannie mortgage for borrowers who grant a deed-in-lieu of foreclosure, from four years to two years.

These borrowers will be expected to put 10% down, and the loan-to-value ratios will also apply to borrowers who have been involved in short sales and who were already subject to a two-year waiting period.

Re-establishing credit after a foreclosure will also take less time, more like three years instead of five, for those who have experienced circumstances such as unemployment or illness, that are beyond their control and can be proven. Likewise, borrowers who have filed Chapter 7 can also cut their waiting periods from the four-year wait to less if they can also prove such extenuating circumstances.

Read more at National Mortgage News and Inman News.

Posted on April 19, 2010 13:48:41 by Blog Author