Mandatory Fannie Mae Guidelines After Bankruptcy And Foreclosure

What Are The Fannie Mae Guidelines After Bankruptcy And Foreclosure

Fannie Mae Guidelines After Bankruptcy And Foreclosure require mandatory waiting period for a home buyer seeking a conventional loan. Fannie Mae and Freddie Mac are the two mortgage giants in the United States that set mortgage lending guidelines on Conventional Loans. Conventional Loans are called conforming loans because they need to conform to the Fannie Mae And Freddie Mac Guidelines . Every mortgage loan program have their own mortgage lending guidelines when it comes to qualifying for a home loan after bankruptcy and foreclosure. HUD, the parent of FHA, is in charge of setting FHA Guidelines After Bankruptcy And Foreclosure like Fannie Mae Guidelines After Bankruptcy And Foreclosure is created and implemented by Fannie Mae and Freddie Mac for Conventional Loans.

Fannie Mae Guidelines After Bankruptcy And Foreclosure require the following waiting period after bankruptcy and foreclosure as well as deed in lieu of foreclosure and short sale.

Fannie Mae Guidelines After Bankruptcy And Foreclosure: Waiting Period After Bankruptcy

Home Buyers can qualify for a Conventional Loan after a Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. There are mandatory waiting period requirements to qualify for a conventional loan after each type of bankruptcy. With a Chapter 7 Bankruptcy, the waiting period is four years from the discharged date of the Chapter 7 Bankruptcy to qualify for a conventional loan. There is a two year mandatory waiting period to qualify for a Conventional Loan After A Chapter 13 Bankruptcy discharge date. Most Conventional Mortgage Lenders do not want to see any late payments after a bankruptcy and re-established credit as well as a few solid credit tradelines . Minimum credit scores required to qualify for a conventional loan is 620 FICO.  A prior bankruptcy will not affect mortgage rates on a conventional loan. Conventional mortgage rates are determined by a borrower’s credit scores and loan to value. The lower the loan to value, the lower the conventional mortgage rate the conventional borrower will get.

Fannie Mae Guidelines After Bankruptcy And Foreclosure: Waiting Period After Foreclosure, Deed In Lieu Of Foreclosure, Short Sale

With FHA, the waiting period after a foreclosure, deed in lieu of foreclosure, and short sale is all the same. Three year waiting period after the recorded date and/or sheriff’s sale of a foreclosure and/or deed in lieu of foreclosure to qualify for a FHA Loan. There is a three year waiting period after the short sale date reflected on the HUD-1 Settlement Statement to qualify for a FHA Loan. With conventional loans it is different with waiting period after foreclosure and deed in lieu of foreclosure and short sale. There is a 7 year waiting period after the recorded date or the date of the sheriff’s sale on a foreclosure to qualify for a Conventional Loan.  There is a four year waiting period to qualify for a Conventional Loan after the recorded date of a deed in lieu of foreclosure and a four year waiting period from the date of a short sale which has been reflected on the HUD-1 Settlement Statement.

Fannie Mae Guidelines After Bankruptcy And Foreclosure: Mortgage Part Of Bankruptcy

A great advantage of Fannie Mae and Freddie Mac when it comes to qualifying for a Conventional Loan is that if you had a mortgage part of bankruptcy there is only a four year waiting period from the discharged date of your Chapter 7 Bankruptcy even though your foreclosure is not recorded after a later date. This is often the problem when people have a mortgage part of a Chapter 7 Bankruptcy where the mortgage lender is not in a major hurry to get the title transferred out of the name of the homeowner into the lender’s name. With HUD, the rules are totally different. FHA requires a three year mandatory waiting period from the recorded date of the foreclosure if you had a mortgage part of your Chapter 7 Bankruptcy. So if you had a mortgage part of your Chapter 7 Bankruptcy on January 10, 2012 and the foreclosure was not recorded until January 10, 2015, you would qualify for a Conventional Loan because Fannie Mae and Freddie Mac has a four year mandatory waiting period from the discharged date of your Chapter 7 Bankruptcy which is January 10, 2012 and the four years is up on January 10, 2016. The recorded date of the foreclosure of January 10, 2015 does not matter for Conventional Loans. However, lets take the same case scenario with FHA.  FHA has a three year waiting period after the recorded date of the foreclosure, on this case scenario, the three year waiting period clock starts on January 10, 2015. This borrower will not be qualified for a FHA Loan until January 10, 2018 which is the three year waiting period from the January 10, 2015 recorded date of the foreclosure. The mortgage part of the Chapter 7 Bankruptcy has no effect on the waiting period requirements like it does for Conventional Loans.

If you have any questions on Fannie Mae Guidelines After Bankruptcy And Foreclosure, please do not hesitate to contact me at 262-716-8151 or email me at gcho@gustancho.com. I am available 7 days a week, evenings, weekends, and holidays to take your calls and answer any questions you may have.

 

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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