New Fannie Mae Rules Aid Former Homeowners

Updated

Good news for those working their way back to home ownership. In an effort to aid in the recovery of the housing market, Fannie Mae has changed its loan rules for homeowners that went through a short sale or gave their deed back to the bank before foreclosure. The U.S. housing market has so far weathered six million foreclosures in the past three years, with another three million expected this year.

The government-sponsored public company has relaxed its loan guidelines that prevented applicants in these situations from obtaining a mortgage for extended periods of time. After meeting certain requirements, the wait for a new loan will be cut to two years from its current four-year wait.

For some former owners, this is the chance they've been waiting for.

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