When Can I Buy Another Homee

Fannie Mae, a private US-based mortgage buyer is the largest holder of mortgages on the secondary market, has set new guidelines to protect business interests and to further safeguard its buyers from foreclosure. The fresh set of policies will affect borrowers who have loan applications submitted after August 1, 2008.

The length of time before you can buy a home will depend on the type of foreclosure:

Foreclosure – 5-7 years Foreclosure which has extenuating circumstances – 3-7 years Deed-in-lieu of foreclosure – 4-7 years Deed-in-lieu of foreclosure with extenuating circumstances – 2-7 years Short sale – 2 years Fannie Mae reduces the waiting period if a borrower is affected by the following uncontrollable factors: Death (not the borrower’s) Job transfer Sickness Accidents which result to severe injury

Additional Guidelines:

Fannie Mae also has additional guidelines for its buyers.  Borrowers should look towards buying a primary place of residence. This means that rental or vacation houses are not considered.

Aside from this waiting period, the following may also required by Fannie Mae for some loans:

*FICO score in the required minimum
* 10% down payment

Homeowners who are affected by foreclosures and looking to get a conventional loan from Fannie Mae should keep themselves updated on company guidelines since these are constantly revised.