The announcement also clarifies that the term "short sale"and "pre-foreclosure sale" mean the same to Fannie May.
The existing policy states that you could be eligible for a loan within 2 years after a "pre-foreclosure sale"; however there was no official policy for "short sales". Now, since both terms are considered to be synonymous, this policy will apply for short sales as well.
So now as long as you can short sale your home or agree to a deed in lieu, you can qualify for a mortgage loan just after 2 years with 20% down.
Fannie May will still require 5 years to re-establish credit for borrowers who cannot short sale a property or agree to a deed in lieu and instead loose their homes through foreclosure.
Here's the breakdown for eligibility depending on how you got out of your last mortgage:
For more info, please see:The existing policy states that you could be eligible for a loan within 2 years after a "pre-foreclosure sale"; however there was no official policy for "short sales". Now, since both terms are considered to be synonymous, this policy will apply for short sales as well.
So now as long as you can short sale your home or agree to a deed in lieu, you can qualify for a mortgage loan just after 2 years with 20% down.
Fannie May will still require 5 years to re-establish credit for borrowers who cannot short sale a property or agree to a deed in lieu and instead loose their homes through foreclosure.
Here's the breakdown for eligibility depending on how you got out of your last mortgage:
- Deed-in-Lieu of Foreclosure: reduce from 4 years to 2 years with 20% down payment, or 4 years with 10% down payment.
- Pre-foreclosure Sale: current waiting period is 2 years. New policy is 2 with 20% down payment.
- Short Sale: same as pre-foreclosure sale.
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