This change in policy seemed to be opposite of the simultaneous news that Short Sale or Deed in Lieu waiting periods are being extended.
For the past few years,
With a 20% down payment, and a minimum 680 credit score, home buyers were able to buy in only 24 months from the completion date of the short sale or deed in lieu. For any loan applications taken after
This is really the only change that could be construed as having a negative effect on new homebuyers trying to get back into the market after a pre-foreclosure event, adds Schang.
If home buyers had less than a 20% down payment, they could purchase using conventional financing with only 10% down, 4 years after a short sale or foreclosure with a minimum 680 credit score.
If a home buyer had a short sale or deed in lieu, the waiting period before being eligible to buy with conventional financing has been moved to 4 years.
However, the 4 year waiting period does not appear to come with the same loan to value and credit score restrictions as did the previous guideline. Homebuyer's with a short sale or deed in lieu can buy in as little as 4 years with a minimum 620 credit score, and 5% down payment, reports Schang.
For more information visit: http://www.findmywayhome.com/home-mortgage-news/buying-after-short-sale-waiting-period-extended/.
Read the full story at http://www.prweb.com/releases/2014/08/prweb12087051.htm
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