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.