Late last week Fannie Mae came out with an update regarding when borrowers are eligible for financing after they were involved in a Preforeclosure Sale, Short Sale, or Deed-in-Lieu of Foreclosure.
• 2 years – 80% max LTV/CLTV or 20% down payment
• 4 years – 90% max LTV/CLTV or 10% down payment
• 7 years – max LTV/CLTV per standard eligibility matrix – which is normally a 97% LTV or 3% down payment
*Most investors already have more stringent guidelines such as GMAC, Chase, and US Bank which all require at least 4 years seasoning since completion of a deed-in-lieu, preforeclosure, short sale, or short payoff. However this change for Fannie Mae should help ease current investor requirements.
The following requirements are currently in effect and waiting periods are from the completion of any one of these events: