Foreclosure Guidelines
The newest guidelines from Fannie Mae: If a primary residence owner lets the property go into foreclosure, they can buy again in 5 years with a 680 FICO and 10% down. If they don’t have a score of 680 and 10% down, they will have to wait 7 years. If they short sale, it is only 2 years. For investment and second owners that let the property go to foreclosure, it is 7 years before they can buy again, no exceptions.
Foreclosure
5 year time period from completion date.
Additional requirements that apply after 5 years up to 7 years following completion date
- The purchase of a principle residence is permitted with a minimum 10 percent down payment and minimum representative credit score of 680.
- Purchase of a second home or investment
- Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at that time.
- Cash-out refinances are not permitted for any occupancy type.
Exceptions for Extenuating Circumstances – Foreclosure
3 year time period from completion date
Additional requirements that apply after 3 years up to 7 years following completion date:
- The same additional requirements apply as above except the minimum credit score of 680 is not required.
Deed-in-Lieu of Foreclosure
No change
Additional requirements that apply after 4 years up to 7 years following completion date:
- Borrower may purchase a property secured by a principal residence, second home or investment property with the greater of 10 percent minimum down payment.
- Limited cash out refinance transactions on secure principal residence, second home or investment property permitted pursuant eligibility requirement effect at that time.
Exceptions for Extenuating Circumstances – Deed-in-Lieu of Foreclosure
No change
The same additional requirements noted above in deed-in-lieu apply after 2 years up to 7 years following completion date.
Time Period After Preforeclosure Sale
2 year time period from completion date. No Additional Requirements.
