If you have been through a Sacramento short sale you can now qualify for a home in 2 years!
May 25, 2010 Investment Financing, Investor News
If you have been through a Sacramento short sale for your home or investment property… You only have to wait 2 years before you can buy again!
Fannie Mae has reduced the time a borrower needs to wait before they can buy again. Previously, guidelines required a Sacramento home buyer to wait 4 years before they could buy a home again after a short sale or a deed-in-lieu of foreclosure. In July some troubled borrowers who give up their homes by voluntarily transferring ownership through a “deed in lieu of foreclosure” or by completing a short sale, where a home is sold for less than the amount owed, will be eligible in two years to apply for a new mortgage backed by Fannie.
Now you are going to have to come to the table with more money down (see below) but at least you can qualify for a home again…sooner!
Short sales/Deed-in-lieu of foreclosure
- 4 year waiting period reduced from 4 years to 2 years!
- Borrowers need to put down 20% on their next purchase.
- If time period has been 4 years, borrowers can put down 10%.
- Ask your lender about exceptions you may qualify for to reduce your down payment to 10% quicker!
Keep in mind that you still have to qualify for the standard guidelines… Be prepared for lender overlays on this one. The announcement from Fannie Mae stated that lenders would have to show that the borrower is now credit worthy… so I suspect there will be many lenders who will add their own guidelines on top of Fannie Mae’s.
