Conventional Loan: Two Year Waiting Period After Deed In Lieu Or Short Sale
If you had a prior deed in lieu of foreclosure or a prior short sale in the past two years, you can now qualify for a conventional loan if and only if you can put a 20% down payment per Fannie Mae guidelines and an approve eligible per DU FINDINGS. Even though you get an Automated Underwriting System approval and you have 20% down payment, make sure with your mortgage loan originator that his or her mortgage company does not have lender overlays and if they do, what their mortgage lender overlays are.
Conventional Loan Overlays After Two Year Waiting Period After Deed In Lieu Of Foreclosure Or Short Sale
Not too many mortgage loan borrowers have a 20% down payment for a home purchase after a deed in lieu of foreclosure or short sale so many mortgage companies do not get volume of these types of files. Mortgage loan originators do not know everything mortgage loan program either due to the enormous amount of rules and regulations. There are not too many conventional mortgage companes that offer conventional loans with 20% down payment after two year waiting period after deed in lieu of foreclosure or short sale. For the mortgage companies that do offer conventional loan programs with 20% down paymet after two year waiting period after deed in lieu of foreclosure or short sale, there probably have their own internal mortgage lender overlays. You need to make sure that the mortgage loan originator handling this type of loan programs checks with the underwriting manager and make sure he or she goes over the case scenario before you enter into a purchase contract. Just getting an approve eligible per DU FINDINGS will not be sufficient in most cases. I, for example, do have mortgage lenders that WILL APPROVE these types of loans as long as they get an approve eligible per DU FINDINGS. It is a special program that has no overlays on 20% down payment conventional loans after two year waiting period after deed in lieu of foreclosure or short sale. Your official approval is the AUTOMATED UNDERWRITING SYSTEM DU APPROVE ELIGIBLE. NO OVERLAYS. As long as the information stated on your mortgage application can be verified and confirms and all conditions met, you will close on your conventional loan.
Examples Of Mortgage Lender Overlays: Conventional Loan After Two Year Waiting Period After Deed In Lieu Of Foreclosure Or Short Sale
If you are interested in pursuing a conventional loan after two year waiting period after deed in lieu of foreclosure or short sale and have the 20% down payment as well as an automated approval I can help you get your conventional loan approved and closed in 30 days if you are a mortgage loan borrower in Illinois, Florida, Wisconsin, Indiana, or California. NO OVERLAYS. AUS APPROVAL IS YOUR APPROVAL. Here are some examples of overlays conventional mortgage lenders can require:
1. 12 months rental verification.
2. Minimum of 3 to 4 credit tradelines that has been seasoned for a minimum of 12 months and sometimes 24 months.
3. Minimum credit score requirements.
4. No lates in the past 12 to 24 months.
6. Compensating factors.
20% Down Payment Is Key To Qualify For A Conventional Loan After Two Year Waiting Period After Deed In Lieu Of Foreclosure Or Short Sale
The 20% down payment is absolutely mandatory to qualify for a conventional loan after two year waiting period after deed in lieu of foreclosure or short sale. If you only have a 10% down payment, then the waiting period is four years. For down payments less than 10%, the waiting period is 7 years. Conventional mortgage lending guidelines are stricter than FHA lending guidelines. For anyone that had a foreclosure or bankruptcy, the mandatory waiting period is 7 years for a conventional loan where for FHA loans it can be as short as one year if they qualify for FHA Back to Work Extenuating Circumstances due to an Economic Event mortgage program.
2015 Fannie Mae Update On Conventional Loan After Deed In Lieu Of Foreclosure And Short Sale
On August 2014, Fannie Mae has eliminated the conventional loan program after 2 year waiting period after deed in lieu of foreclosure and short sale with 20% down payment. Home buyers with a prior short sale and/or deed in lieu of foreclosure can now qualify for a conventional loan four years after a deed in lieu of foreclosure and/or short sale with 5% down payments. Those home buyers who had no ownership in a home in the past three years can now qualify for a conventional loan with 3% down payment. To qualify for a conventional loan after a standard regular foreclosure, the waiting period remains at a 7 year waiting period.