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Freddie Mac Foreclosure Guidelines On Conventional Loans

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Freddie Mac Foreclosure Guidelines On Conventional Loans

This ARTICLE On Freddie Mac Foreclosure Guidelines On Conventional Loans Was PUBLISHED On August 9th, 2019

What are the Freddie Mac Foreclosure Guidelines On Conventional Loans

Borrowers can qualify for government and conventional loans after a housing event. A housing event is one of the following events:

  • Foreclosure
  • Deed In Lieu Of Foreclosure
  • Short-Sale

Government and Conventional Mortgage Programs require a mandatory waiting period after a housing event to qualify for home loans.

  • The waiting period is different depending on the loan program
  • Conventional Loans have the longest waiting period requirements after a foreclosure, deed in lieu of foreclosure, short-sale out of any other loan programs

In this article, we will cover and discuss Fannie Mae and Freddie Mac Foreclosure Guidelines On Conventional Versus Other Loan Programs.

Fannie Mae And Freddie Mac Mortgage Agency Guidelines

what are the Fannie Mae And Freddie Mac Mortgage Agency Guidelines

Conventional Loans are called Conforming Loans.

  • The reason they are called conforming loans is that conventional loans need to conform to Fannie Mae and/or Freddie Mac Agency Guidelines
  • Private lenders originate and fund conventional loans
  • Lenders use their warehouse lines of credit to fund home mortgages
  • Once the loan is funded, lenders need to sell the loans that just funded on the secondary market to Fannie and/or Freddie
  • Once Fannie/Freddie buys these loans from lenders, the lender will use the proceeds to pay down their warehouse lines of credit
  • With the lines paid down, the lender repeats the process and funds more loans and sells the funded loans to Fannie and/or Freddie

Fannie Mae and Freddie Mac will not purchase loans that do not conform to their agency mortgage guidelines. This is why Fannie Mae and Freddie Mac require lenders to sell them loans that only conform.

Waiting Period Requirements On Fannie Mae And Freddie Mac Foreclosure Guidelines Versus Government Loans

what are teh Waiting Period Requirements On Fannie Mae And Freddie Mac Foreclosure Guidelines Versus Government Loans

There are three types of government loans:

  • FHA Loans
  • VA Loans
  • USDA Loans

Here are Fannie Mae And Freddie Mac Foreclosure Guidelines Versus Government Loans:

Fannie Mae And Freddie Mac Foreclosure Guidelines on a deed in lieu of foreclosure and/or short-sale is four years to qualify for conventional loans. There is a seven-year waiting period to qualify for conventional loans after a standard foreclosure:

  • HUD requires a three-year waiting period after a foreclosure, deed in lieu of foreclosure, short-sale to qualify for FHA Loans
  • USDA requires a three-year waiting period after a foreclosure, deed in lieu of foreclosure, short-sale to qualify for USDA Loans
  • The Department of Veterans Affairs (The VA) requires a two-year waiting period after a foreclosure, deed in lieu of foreclosure, short-sale to qualify for VA Home Loans

Non-QM Mortgage Guidelines

what are the Non-QM Mortgage Guidelines

Gustan Cho Associates Mortgage Group offers Non-QM and alternative financing loan programs. There are no waiting period requirements after foreclosure, deed in lieu of foreclosure, short-sale, bankruptcy with Non-QM Loans. Many home buyers can qualify for Non-QM Loans with one day after foreclosure, deed in lieu of foreclosure, short-sale. Or one day after a bankruptcy discharge date. 10% to 20% down payment is required on Non-QM Loans. There is no maximum loan limits and no private mortgage insurance required on Non-QM Loans.

For more information about the contents of this article and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. Gustan Cho Associates Mortgage Group is available 7 days a week, evenings, weekends, and holidays.

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