Mortgage Navigator • Conventional • Refinance

Inheritance, divorce & legal awards

Ownership changes caused by inheritance or a court/legal award can create exceptions to ordinary cash-out ownership waiting periods.

Build My Mortgage Game Plan Conventional Navigator

Fannie

Fannie provides no six-month ownership waiting period when the lender documents that the borrower acquired the property through inheritance or was legally awarded the property through divorce, separation or dissolution of a domestic partnership.

Freddie

Freddie likewise provides borrower/refinance exceptions when the borrower inherited or was legally awarded the property under a final legal judgment or decision.

Documentation drives the exception: title, probate documents, decree, settlement agreement or final legal order should be reviewed before assuming a standard seasoning rule applies.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Refinance classification matters. A transaction that falls outside limited/no-cash-out rules may become cash-out even when the borrower receives little or no cash personally.