October 28th, 2008 10:06 AM by Lehel Szucs
New Fannie Mae Guidelines Encourage Short SalesFannie Mae recently released updated underwriting guidelines for new mortgage loans that directly address individuals with various types of foreclosure history.
Potential borrowers with a foreclosure on their credit record must wait 5 years to be considered for new funding, and are subject to additional credit and down payment requirements for 5 to 7 years.
Deed-in-lieu-of-foreclosures warrant a 4 year wait with additional requirements for 4 to 7 years.
Finally, the silver lining...Short Sales require only a two year wait with no additional requirements.
These new guidelines make short sales a more attractive option for homeowners.