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.
Do you know how much home you can afford?
Most people don’t... Find out in 10 minutes.
Get Pre-Approved Today