Fannie Mae Updates Waiting Period Policy

Posted by Stacey May on Monday, November 24th, 2014 at 3:37pm.

Fannie Mae recently updated its policy related to the minimum waiting periods following a short sale or deed-in-lieu of foreclosure, making it easier for distressed borrowers to re-enter the housing market.

 

Under the revised policy, all loans with application dates on or after August 16th may be eligible for a new loan in as little as 4 years instead of the previous wait time of 7 years.

Fannie still requires borrowers to demonstrate that they have re-established credit following a significant derogatory credit event such as a foreclosure, bankruptcy, short sale or deed-in-lieu of foreclosure.

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