Extenuating circumstances could cut the waiting period to two years for Chapter 7 and Short Sale It can be pretty daunting to keep up with the waiting periods that different loan programs require before you can qualify for a new mortgage loan. Fannie Mae and Freddie Mac are the two agencies that issue a typical conventional mortgage loan. Below is a table you can use as a reference. Don’t hesitate to get in touch with us with any questions. Fannie Mae vs Freddie Mac Waiting Periods for Derogatory Credit (Effective October 2014)
| FANNIE MAE | FREDDIE MAC | ||||
| Derogatory Event | Waiting Period Requirements | Waiting Period with Extenuating Circumstances | Waiting Period Requirements | Waiting Period with Extenuating Circumstances | |
| Bankruptcy Chapter 7 or 11 | 4 years | 2 years | Defined by Loan Prospector Automated Underwriting System | Defined by Loan Prospector Automated Underwriting System | |
| BankruptcyChapter 13 |
|
Defined by Loan Prospector Automated Underwriting System | Defined by Loan Prospector Automated Underwriting System | ||
| Multiple Bankruptcy Filings | 5 years if more than one filing within thepast 7 years | 3 years from the most recent discharge or dismissal date | Defined by Loan Prospector Automated Underwriting System | Defined by Loan Prospector Automated Underwriting System | |
| Foreclosure * | 7 years | 3 years up to 7 years:
|
Defined by Loan Prospector Automated Underwriting System | Defined by Loan Prospector Automated Underwriting System | |
| Deed-in-Lieu Preforeclosure Sale (aka Short sale), or Charge-Off of Mortgage Account |
|
2 years – **LTV ratios per the Eligibility Matrix | Defined by Loan Prospector Automated Underwriting System – see below for important information for Short Sales | Defined by Loan Prospector Automated Underwriting System – see below for important information for Short Sales | |
Contact a licensed loan officer for specific parameters for both Fannie Mae and Freddie Mac Waiting Periods after a significant derogatory event.
