Fannie Mae Foreclosure Guidelines on Conventional Loans

This article covers Fannie Mae foreclosure guidelines on conventional loans. Conventional loans are often referred to conforming loans because conventional loans need to conform to Fannie Mae or Freddie Mac agency guidelines. Fannie Mae and Freddie Mac are the two government-sponsored enterprises (GSE) setting the agency guidelines on conventional loans. Fannie Mae and Freddie Mac are GSEs whose role is to provide stability in the housing and mortgage markets. To qualify for a conventional loan after a housing event.

Homebuyers can qualify for a conventional loan after a foreclosure, deed-in-lieu of foreclosure, short sale after meeting the mandatory waiting period requirements. Borrowers cannot have late payments after a housing event and re-established credit.

Per Fannie Mae Foreclosure Guidelines, a housing event is defined as one of the three: Foreclosure, deed-in-lieu of foreclosure, or short-sale. Fannie Mae and Freddie Mac require the borrower meet the minimum waiting period after a deed-in-lieu of foreclosure, short-sale, or standard foreclosure. In the following paragraphs, we will cover Fannie Mae foreclosure guidelines on conventional loans.

What Are Fannie Foreclosure Guidelines on Conventional Loans

The Fannie Mae foreclosure guidelines after a housing event on conventional loans require mandatory waiting period requirements. As mentioned on the introductory paragraph, there are three types of housing events: Foreclosure, deed-in-lieu of foreclosure, and short-sale. There a fourth type of housing event which is a prior mortgage included in bankruptcy. Fannie Mae foreclosure guidelines on waiting period requirements is different depending on the type of housing event. Fannie Mae foreclosure guidelines on waiting period after a housing event depends on the type of housing event. In the following paragraphs, we will cover Freddie Mac and Fannie Mae foreclosure guidelines after a housing event to qualify for a conventional loans. Get Approved for conventional loans

Waiting Period Fannie Mae Guidelines After a Foreclosure

What is the waiting period requirements to qualify for a conventional loans after a  foreclosure. There is a four year mandatory waiting period requirement after the recorded date of foreclosure to qualify for a conventional loan. Borrowers can qualify for any type of conventional loan after meeting the mandatory waiting period requirement with re-established credit.

Waiting Period Fannie Mae Guidelines After a Deed-in-Leu of Foreclosure

What is the waiting period requirements to qualify for a conventional loans after a deed-in-lieu of foreclosure. There is a four year mandatory waiting period requirement after the recorded date of a deed-in-lieu of foreclosure to qualify for a conventional loan. Borrowers can qualify for any type of conventional loan after meeting the mandatory waiting period requirement with re-established credit.

Waiting Period Fannie Mae Guidelines After a Short sale

What is the waiting period requirements to qualify for a conventional loans after a short sale. There is a four year mandatory waiting period requirement after the recorded date of a short sale to qualify for a conventional loan. Borrowers can qualify for any type of conventional loan after meeting the mandatory waiting period requirement with re-established credit.

Waiting Period Fannie Mae Guidelines with a Mortgage Included in Bankruptcy

What is the waiting period requirements to qualify for a conventional loans after the discharge date of bankruptcy on a bankruptcy with a prior mortgage included. There is a four year mandatory waiting period requirement after the discharge date of Chapter 7 bankruptcy with a prior mortgage in bankruptcy qualify for a conventional loan. Borrowers can qualify for any type of conventional loan after meeting the mandatory waiting period requirement with re-established credit.

Types of Housing Events

Unlike FHA loans, Conventional loans classify housing events differently. The waiting period requirements are different depending on the type of housing event. Fannie Mae has a longer waiting period after a foreclosure versus a deed-in-lieu of foreclosure or a short sale. The waiting period after foreclosure to qualify for a conventional loan is seven years.

There is a four year waiting period after a deed-in-lieu of foreclosure or a short sale. Therefore, the waiting period after a short sale or a deed-in-lieu of foreclosure is shorter than a standard regular foreclosure.

This is not the case with government loans. Government loans (FHA, VA, USDA) classifies all housing events the same. The waiting period requirements after a foreclosure, a deed-in-lieu of foreclosure, or short sale is all the same. A deed-in-lieu of foreclosure or a short sale is not given a shorter waiting period requirement on FHA, VA, USDA loans. In this article, we will discuss and cover the Fannie Mae f0reclosure guidelines after a housing event on Conventional loans. Qualify for a conventional loan after a foreclosure

Fannie Mae Foreclosure Guidelines on Waiting Period Start Date

The waiting period start date clock starts the date the title has exchanged ownership. The waiting period start date is the date the homeowner’s name has been transferred out of the title and moved to the lender’s name. It is not the date the homeowners have vacated the property. The name of the deed needs to be transferred to the lender’s name or the new owner’s name or the date of the sheriff’s sale. The same holds true with a deed in lieu of foreclosure. The waiting period start date after a deed in lieu of foreclosure is not the date the homeowner surrendered the deed but rather it is the date the deed changed hands. Often times the homeowner may have relinquished ownership but the lender did not take out the borrower’s name into their name.. If this happens, then the waiting period did not even start yet. The waiting period start date after a short sale is the date when the short sale closed.

Fannie Mae Foreclosure Guidelines on Waiting Period Based on the Type of Housing Event

There are mandatory waiting period requirements to qualify for conventional loans after a housing event:

• There is a seven-year waiting period after the recorded date of foreclosure to qualify for a conventional loan
• There is a four year waiting period after the recorded date of deed in lieu of foreclosure
• There is a four year waiting period after a short sale to qualify for a conventional loan

A prior foreclosure, deed in lieu of foreclosure, or short sale has no impact on mortgage rates on conventional loans.

Fannie Mae Foreclosure Guidelines After Timeshare Foreclosure

A timeshare loan is not considered a real estate loan. Under Fannie Mae and Freddie Mac Agency Mortgage Guidelines, a timeshare is not a real estate loan. A timeshare is considered an installment loan. Therefore, under Fannie Mae and Freddie Mac Guidelines, there are no waiting period requirements after a timeshare foreclosure to qualify for a conventional loan.

Most lenders still consider a timeshare foreclosure as a real estate foreclosure and will require waiting period requirements as part of their lender overlays. Many lenders require a waiting period after a timeshare foreclosure just like a regular foreclosure.

Gustan Cho Associates is a national mortgage company licensed in multiple states with no lender overlays on government and conventional loans. Gustan Cho Associates has no waiting period after a timeshare foreclosure to qualify for a conventional loan.

Fannie Mae Foreclosure Guidelines on Mortgage Included in Bankruptcy

Borrowers with a prior mortgage included in bankruptcy can qualify for a conventional loan after four years from the discharged date of the bankruptcy. The waiting period requirements starts from the date of the bankruptcy discharged date. The foreclosure can happen after the discharged date and has no impact on the waiting period.

The borrower cannot have reaffirmed the mortgage after bankruptcy. Fannie Mae and Freddie Mac expect timely payments and re-established credit after the bankruptcy.

With FHA loans, if the borrower had a prior mortgage included in the bankruptcy, the waiting period start date is the date of the finalized housing event. There is a three year waiting period from the waiting period start date after the housing event to qualify for an FHA loan. The discharged date of bankruptcy does not matter.

Get Approved for mortgage after housing event with a lender with no overlay

Mortgage Approval After a Housing Event With a Lender With No Overlays

To qualify for a home mortgage with a national mortgage company licensed in multiple states with no lender overlays on government and conventional loans, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. Gustan Cho Associates has zero lender overlays on FHA, VA, USDA, and conventional loans.  The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.