The clock is ticking
for homeowners with previous short sales to get back in the game
If you have had a short sale during our recent economic
downturn, you will be able to buy a house again. You just might have to wait a
The previous waiting period for a Fannie Mae-backed loan was
two years, but beginning on August 18, 2014, that guideline will change to a
four-year waiting period. This will apply to homeowners who had a recent short
sale or deed-in-lieu of foreclosure.
Other changes and restrictions to Fannie Mae’s guidelines include
the removal of the loan-to-value ratio and a required 20% down payment on the
loan in order to qualify for a Fannie Mae-backed loan.
However, there are
some ways you can still qualify:
If it has been at least two years, you can still
get your loan application in by Friday, August 15th and be
grandfathered in to the existing program.
If you can prove extenuating circumstances, you
may still have to wait only two years.
You can try to qualify through other loan
programs, but may pay a little higher interest rate.
You can apply for a FHA-backed loan after three
years, or only one year proving extenuating circumstances caused the short
What qualifies as
Thousands of people bought homes during the housing boom
using creative financing options, but when the market crashed, they found
themselves extremely underwater and unable to pay their mortgage. Many of these
homeowners opted for a short sale to avoid having a foreclosure.
However, some homeowners lost their homes as a result of a
job loss, illness, divorce or other significant event. If these homeowners can
prove that these circumstances were beyond their control, have re-established
their credit and have gotten back on their feet, they may be an exception to
If you are ready to buy again after your recent short sale,
call us right away to see if you will qualify. We can get the application
process started by Friday, August 15th and lock you in to the
existing guidelines. After that period, you may still qualify. We will look for
options that will work for you. Because we don’t just sell mortgages...We
provide mortgage solutions.