The real estate world is changing, for the better. Our “favorite” Government Sponsored Enterprise (GSE), Fannie Mae, was thinking the same thing. So they finished software work on the Automated Underwriting system, known locally as DU, and improved their latest release. So what does that mean for y’all Boomerang Buyers in this post short sale apocalypse, where bank lending guidelines are becoming more restrictive?
Fannie Mae is cancelling their waiting period, aka “seasoning” and doing away with their Loan-to-Value (LTV) scale. But there is the catch, by doing away with those previous restrictions, now they will start a policy which would require borrowers to wait 4 years after a short sale to obtain a new mortgage.
In Fannie Mae’s current condition, they will consider a borrower for a new mortgage 2 years after a short sale but with a 20% down-payment (primary residence loan max. $546,250). Once the new Fannie Mae guidelines kick in, you’ll have to get with us at Agent619.com to evaluate each case to see if the 2-year seasoning clause will apply in the event that a real-life extenuating circumstances did lead the short sale and financial distress.
This will be in effect for all applications taken and DU findings obtained on or after the weekend of 8/16/2014.
Here is a link from Fannie Mae about these changes: