How many years after bankruptcy can you get a conventional loan?

4 years
If you’ve gone through a Chapter 7 bankruptcy, you need to wait at least 4 years after a court discharges or dismisses your bankruptcy to qualify for a conventional loan. Government-backed mortgage loans are a bit more lenient. You need to wait 3 years after your bankruptcy’s dismissal or discharge to get a USDA loan.

What is the Fannie Mae waiting period after Chapter 7?

Conventional Financing with the Federal National Mortgage Association (FNMA/Fannie Mae) after a Chapter 7 is allowed after 48 months from the discharge/dismissal date. A two-year waiting period is allowed if certain “extenuating circumstances” can be documented.

What are extenuating circumstances for Fannie Mae?

Extenuating circumstances are nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.

What is the minimum credit score for a Fannie Mae loan?

620
How to Apply for a Fannie Mae-Backed Mortgage. Homebuyers must also meet minimum credit requirements to be eligible for Fannie Mae-backed mortgages. For a single-family home that is a primary residence, a FICO score of at least 620 for fixed-rate loans and 640 for adjustable-rate mortgages (ARMs) is required.

Why do banks sell mortgages to Fannie Mae?

Banks sell their mortgages to Fannie Mae for cash or securities. Either will reduce the capital on their financials and allow them to lend out more money to more people.

Does Fannie Mae own your mortgage?

Fannie Mae is at all times the owner of the mortgage note, whether the note is in Fannie Mae’s portfolio or whether owned as trustee, for example, as trustee for an MBS trust. In addition, Fannie Mae at all times has possession of and is the holder of the mortgage note, except in the limited circumstances expressly described below.

Does Fannie Mae or Freddie Mac own my loan?

Freddie Mac Owns Your Mortgage If Freddie Mac owns your mortgage, then your lender must have sold it to Freddie Mac — or sold it to an investor that eventually did. This is nothing to be alarmed about. In fact, it’s kind of a vote of confidence in you.

What you should know about Fannie Mae loans?

Fannie Mae is a government-sponsored enterprise that makes mortgages available to low- and moderate-income borrowers.