Once you meet the waiting period requirements, there are no additional restrictions, like a larger down payment. A FHA loan is going to require a 3. If you would like an introduction to Mia, shoot me an email to scott findmywayhome.
Hi, Scott. My wife and I signed BK 7 on December , we included a property that was not our primary residence, that property was foreclosure on June Now we would like to buy another property as investment or refinance our primary residence and get cash.
Can we get a conventional loan right now? No debts. Hi Rodrigo, You could only use Conventional to buy an investment property, and you would be eligible to use conventional for either right now.
Using Fannie Mae guidelines, there is a 4 year waiting period from the date of the BK discharge, you can ignore the foreclosure.
Not many lenders know these guidelines. If you would like an introduction to a loan officer friend of mine that has experience with this type of scenario, shoot me an email to scott findmywayhome. Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. Empower Others:. Like this: Like Loading About the Author. Scott Schang A 20 year veteran of the Mortgage and Real Estate industry, I am passionate about educating and empowering consumers.
I have been writing about consumer protection issues, and making sense of complicated real estate and mortgage topics on this website since Leave a Question or Comment About this Topic. Jake says:. August 27, at pm. Sam K says:. July 10, at pm. Scott Schang says:. July 11, at am. Colleen Samuelson says:. May 14, at pm. May 15, at am. Nancy says:. December 27, at am. Lisa says:. January 11, at am. Rodrigo says:. July 10, at am.
Close dialog. Session expired Please log in again. Mortgage bankers use their warehouse line of credit to fund the loans they originate under their company name. Once they fund the loan, all lenders need to sell the loans they funded on the secondary market.
Fannie Mae and Freddie Mac are the two largest buyers of mortgages on the secondary market in the United States.
Once mortgage bankers sell the loans that originate on the secondary market, they will pay off their warehouse line of credit and originate more loans.
This is how Fannie Mae and Freddie Mac provide liquidity in the mortgage markets. Due to Fannie and Freddie, lenders can offer home mortgages quickly and with low down payments at low mortgage rates.
Many times, Fannie Mae has difficulty with accepting borrowers getting a gift. Fannie Mae does not like gift funds. Especially from mortgage loan applicants with lower credit scores, higher debt to income ratios, and limited credit tradelines on their credit report.
Freddie Mac is not as picky with regards to gift funds as Fannie Mae. Many times when borrowers get denied by Fannie Mae, they may get approved with Freddie Mac. It's worth emphasizing that an initial DU or LP approval from your loan officer doesn't mean you're guaranteed to be approved for the mortgage. Though it is a good sign. If you've received an initial AUS approval the underwriter still needs to verify your documentation before final approval.
With the information from a DU and LP in hand, borrowers and loan officers get a better idea of whether or not a loan will be approved. That said, in reality, an experienced mortgage loan officer will know what documentation a borrower needs to provide in advance. Still, an automated underwriting system is a great way to double-check and avoid missing something before the loan goes to the underwriter. Monday — Friday a. Call us Ever asked your loan officer what a DU or LP is, only to get an answer that left you more confused?
Without Freddie and Fannie, lenders would quickly run out of funds with which to make loans.
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