The Primrose Path?

My company is shutting down our California office, and I accepted a transfer to an office in another state.  I was able to sufficiently demonstrate hardship to my lenders and negotiate a settlement with each – the fact that my employer provided loss-on-sale assistance certainly helped.  We closed escrow two days ago, without a single late payment to either lender.

In the city I will be moving to, I was referred to a mortgage broker who assured me (repeatedly) that I would have no problem buying a house, as long as I was not delinquent on my current loans when the house was sold.  My credit score is over 780 (at least, it was until two days ago…), and I have sufficient income and cash on hand to qualify for a loan.

Based on all of this, I entered into a contract for a home in my new city.  My loan was approved by underwriting, but did not make it through QC – evidently a senior underwriter called my broker and told him that I would not qualify due to the short sale, and that this was a recent (as of July 1) change to Fannie Mae underwriting guidelines.

Is this true?  Or, did I foolishly put my faith in a broker who led me down the proverbial primrose path?

Chris

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Hello Chris,

I didn’t see any changes to that policy in July 2009.  Here are the Fannie Mae Announcements.  If you have 10% to put down, then you should be able to qualify.  Try a different lender.

Thanks for the questions and hope this helps.

Paul

Do not, as some ungracious pastors do,
Show me the steep and thorny way to heaven,
Whiles, like a puff’d and reckless libertine,
Himself the primrose path of dalliance treads
And recks not his own rede.