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FNMA Reduced Waiting Periods for Buyers

with Past Adverse Credit Events.

Hope for potential home buyers with past adverse credit events continues to improve as FNMA announces changes to existing waiting periods.
 
Foreclosures Reduced to 4 Years if Mortgage Debt was Discharged through Bankruptcy.
Effective immediately, potential buyers with a past foreclosure will no longer be subject to the 7 year waiting period if the mortgage debt was discharged through bankruptcy. Instead, the borrowers are allowed to be subject to the shorter 4 year waiting period used for Bankruptcy events.
 
Short Sale & Deed-in-lieu of Foreclosure Eliminates LTV Requirement
The LTV restrictions that accompany the current waiting period requirement for short sales and deed-in-lieu of foreclosure events are being removed. The update will establish a standard 4 year waiting period with a 2 year option permitted if the borrower had extenuating circumstances, eliminating the former 7 year waiting period for new loans using the max program LTV. This update is effective for loans with applications dated on and after August 16, 2014.
 
These waiting periods should be used as general guidelines. Additional requirements or restrictions may be applicable based on borrower’s specific credit history.
 
For more details, please feel free to contact me today.
 

 
Natalya Chebotar
Loan Officer
NMLS# 247575
(407) 869-8830
(321) 356-9618
www.SpecLoan.com