With the release of a new version of DU, post-short sale guidelines are tightening. Fannie Mae is cancelling their seasoning/LTV scale and starting a policy that will require borrowers to wait 4 years after a short sale to obtain a new mortgage.
Currently, we will consider a borrower for a new mortgage 2 years after a short sale with 20% down with loan amounts up to $546,250 (on primary residences). Once the FNMA guideline change takes place, we can evaluate each case considering the 2 year seasoning in the event that extenuating circumstances caused the short sale.
All of these changes are for applications taken and DU findings obtained on or after the weekend of August 16, 2014. If you have any questions about this or if one of your buyers had a short sale less than 4 years ago and wants to purchase, please contact me.