Posted on Sunday, April 25, 2010
FNMA has changed the time homeowners who lose their homes will have to wait before qualifying for a FNAM loan to buy a new home again. Up until now a borrower had to wait 4 years following a DIL or 2 years following a pre-foreclosure (short sale). Now the timeline will be uniform regardless of whether the home was lost by DIS or short sale.
Now if your new loan will be up to 80% LTV you will need to wait 2 years. If it will be p to 90% you will need to wait 4 years. If it is over 90% you will need to wait up to 7 years. Credit reference requirements and payment history are also being replaced. Now after a bankruptcy, foreclosure, DIL or short sale credit will be deemed re-established if the following requirements are met; waiting period, DNFA DU approves or if manual approval loan meets minimum credit score, borrower has traditional credit as per FNMA selling guide B3-5.3. DU will be updated in June. Effective July 1, 2010 lenders will be required to determine during credit report review if the new policies apply.