Shortened Waiting Period | Blog

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Fannie Mae recently updated its policy related to the minimum waiting periods following a short sale or deed-in-lieu of foreclosure, making it easier for distressed borrowers to re-enter the housing market. Under the revised policy, all loans  with application dates on or after August 16, 2014 may be eligible for  new loan in as little as 4 years instead of the previous wait time of 7 years.

Fannie still requires borrowers to demonstrate that they have re-established credit following a significant derogatory credit event such as a foreclosure, bankruptcy, short sale, or deed-in-lieu of foreclosure.