It’s important to note that Fannie is releasing DU (Desktop Underwriter) version 9.1 on August 16, 2014. Along with this release they are making a MAJOR change to the guidelines.
Increased Wait Period From Short Sale to Purchase
With the new change, they will be requiring 4 years seasoning for a short sale, regardless of the LTV (loan to value). Currently they only require a 2 year wait period from a short sale to purchase a new home with 20% or greater as the down payment.
Act Now Before The Deadline of 8/16/14
Borrowers have up until the 16th of August, to utilize the old version of DU, so if you, or anyone you know, has a short sale between 2 years and 4 years, you will need to get in gear to either purchase again before the deadline. This would also apply for a refinance of any existing loans for cash out or to reduce the interest rate/remove mortgage insurance. Feel free to reach out with any questions regarding these short sale changes in 2014.
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