New Rules for Fannie Mae

Trying to minimize foreclosures, new Fannie Mae rules will go into effect as of July 2010 for homeowners who do a “deed in lieu of foreclosure” or short sale allowing them to apply for another Fannie Mae backed loan in two years. Currently, Freddie Mac still requires a four year wait.

Previously the wait period was reduced from five years to four and now to two. However a minimum 20% down payment will be required unless there are “extenuating circumstances” such as job loss, according to Fannie Mae wants to help some troubled borrowers get back into home market.