Tighter Guideline Restrictions Announced

Fannie Mae announced this week a host of changes to their underwriting policy for loans sold to them. As in the past, Freddie Mac will most likely match them. Here are some of the key changes that could affect your next loan.

The waiting period a buyer must wait to purchase another home after a foreclosure has been extended from 4 years to 7. If you had a short-sale, also known as a pre-foreclosure, you now must wait two years. Previously, there was no time restriction.

If you are purchasing a 2nd home, a 2-4 unit property, or obtaining a Jumbo Conforming loan, you must contribute a minimum of 5% of the down payment from your own verified funds. In the past the down payment could have all been gift funds from a family member.