Waiting Period Cheat Sheet How Long Buyers Have To Wait Before Getting Back In A Home. Fannie Mae Pre-Foreclosure Event
Current Waiting Requirements
New Waiting Period Requirements
Deed-In-Lieu of Foreclosure
4 Years Additional Requirements. Apply After 4 Years, Possibly Up To 7 Years
2 Years - 80% Loan-To-Value Ratio
Pre-Foreclosure
2 Years
4 Years - 90% Loan-To-Value Ratio
Short Sale
No Policy Currently Exist
7 Years- Loan-To-Value Ratio Per Fannie Mae’s Eligibility Matrix (link)
FHA Eligibility After Short Sale YES If: *
All mortgage payments due on the prior mortgage were made within the month due for the 12 month period preceding the short sale and all installment debt payments for the same time period were also made within the month due.
NO If: **
Borrowers in default on their mortgage at the time of the short sale (or preforeclosure sale) are not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale.
* Borrowers are considered eligible for a new FHA-insured mortgage if, from the date of loan application for the new mortgage they follow the above criteria. ** Borrowers who sold their property under FHA’s pre-foreclosure sale program are not eligible for a new FHA-insured mortgage from the date that FHA paid the claim associated with the pre-foreclosure.
VA Eligibility Bankruptcy Filed Under the Straight Liquidation and Discharge Provisions of the Bankruptcy Law You may disregard a bankruptcy/Foreclosure discharged more than 2 years ago.
If the bankruptcy was discharged within the last 1 to 2 years, it is probably not possible to determine that the applicant or spouse is a satisfactory credit risk unless both of the following requirements are met: · the applicant or spouse has obtained consumer items on credit subsequent to the
bankruptcy and has satisfactorily made the payments over a continued period, and the bankruptcy was caused by circumstances beyond the control of the applicant or spouse such as unemployment, prolonged strikes, medical bills not covered by insurance, and so on, and the circumstances are verified. Divorce is not generally viewed as beyond the control of the borrower and/or spouse. Additional REsource’s http://www.fhaoutreach.gov/FHAHandbook/prod/index.asp http://www.va.gov/ https://www.efanniemae.com http://www.freddiemac.com/
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