After foreclosure guidelines FHA, Fannie Mae & Freddie Mac follow

Reblogger Michael J. Perry
Real Estate Agent with RE/MAX Associates of Lancaster, PA.

Many Americans have suffered disappointment during the current housing crisis. The following list will serve as a guideline as to "how long must we wait, until we can buy again?" It is quite possible that these will be modified in the future.

Original content by David Houtsma

These are the general guidelines that FHA, Fannie Mae, and Freddie Mac follow when considering a loan after a short sale or foreclosure: 

Short sale with FHA Loan

  • Can purchase right away with no mortgage default
  • 3 year wait if in default at the closing
  • Reduced wait if the borrower has re-established good credit and can show extenuating circumstances

Short Sale With Fannie Mae Loan

  • 2 year wait if the borrower puts 20% down
  • 4 year wait if the borrower puts between 10% to 20% down
  • 7 year wait if the borrower puts less than 10% down
  • 2 year wait if the borrower can show extenuating circumstances and puts more than 10% down

Short Sale with Freddie Mac Loan

  • 4 year wait before being able to get a loan
  • 2 year wait if the borrower can show extenuating circumstances

Foreclosure with an FHA Loan

  • 3 year wait before being able to get a loan
  • Reduced wait if the borrower can show extenuating circumstances and re-establishes good credit

Foreclosure with a Fannie Mae Loan

  • 7 year wait from the completed foreclosure sale date
  • 3 year wait if the borrower can show extenuating circumstances. Additional underwriting requirements apply for 4 years after a 3 year waiting period.
  • 7 year wait for a 2nd home, cash out re-financing, or an investment property

Foreclosure with a Freddie Mac Loan

  • 5 year wait from the completed foreclosure sale date
  • 3 year wait if the borrower can show extenuating circumstances

** As a side note a deed in lieu of foreclosure follows the same guidelines as FHA’s foreclosure policy, the same as Fannie Mae and Freddie Macs short sale policy.

Keep in mind these are general guidelines. If you are considering purchasing a home it is always wise to speak directly with a lender about your particular situation to see where you stand in regards to qualifying. And if you need to speak to a lender... let me know and I can give you a great referral.

www.fha.com

www.fanniemae.com

www.freddiemac.com

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Anonymous
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Great blog and great job. Keep up the good work and good luck to you this year. Thanks
June 17, 2012 03:58 AM #1
Rainmaker
969,782
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

Good info here as it is a subject that has touched a lot of people of the past few years. Thanks for the info.

June 17, 2012 04:10 AM #2
Rainmaker
546,569
Gary Frimann
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
California Broker and REALTOR

Amazingly, I get asked this question all the time.  The home ownership dream is still pervasive, even by those people who "lost".  I wish they had a two-tiered system whereby someone could buy earlier, just pay a higher interest rate and bigger down payment if it appears they just walked away.

June 17, 2012 04:17 AM #3
Rainmaker
875,410
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Very well put together. In my humble opinion these regulation are much to restrictive. If these guidelines would be eased, it would put a lot more folks back into the home buyers market.

June 17, 2012 05:39 AM #4
Rainer
54,998
Kim Burton
Prudential Bob Yost Homesale Services - New Oxford, PA

The only thing is, how long do you think it will take for these guidelines to change.  I wouldnt swear by these numbers when going over my cloents option because these guidelines gave already changed in the past year.

October 24, 2012 01:50 AM #5
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Michael J. Perry

Lancaster Relo Specialist
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