Qualifying to Buy After Selling Short

Fannie Mae changes

Fannie Mae changes

This information comes via Rosa Briggs of American Pacific Mortgage and felt it was important enough to share…”I wanted to get this news to you right away! Currently those buyers with a prior short sale can buy again in 2 years using a Conventional loan with 20% down. This is changing, effective August 16th (guidelines change by Fannie Mae). The waiting period after a short sale will be increased to 4 years, unless they qualify under the extenuating circumstance guideline. I know I have clients this will affect as I’m sure you do too. So between now & August 16th is the sweet spot to buy. (Note: loan application must be made prior to 8/16, but can close after 8/16)

There are some other changes but this one will have the most affect right now! ”

Existing Homes Sales on the Rise

Sales of previously owned U.S. homes rose more than anticipated in August as investors used cash to buy distressed properties. (At a personal level, I have come across numerous homes in a distressed situation with multiple offers waiting for a lender’s decision. This is becoming more of the norm than the exception.)

Purchases of existing houses, which are tabulated when a contract closes, increased 7.7 percent to a five-month high 5.03 million annual rate, figures from the National Association of Realtors showed today in Washington. The median forecast of economists surveyed by Bloomberg News called for a 4.75 million rate. (entire story)