Mortgage Navigator • Conventional • Can This Be Done?

Inherited or Legally Awarded Property

Inheritance and legal awards are specifically recognized in agency rules and can bypass ordinary ownership-history requirements.

Build My Mortgage Game Plan Compare Fannie vs. Freddie

Fannie cash-out

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

Fannie limited cash-out

Fannie also allows title-at-application exceptions for inheritance and legal awards in limited cash-out transactions.

Freddie

Freddie permits refinance borrower exceptions when a borrower inherited or was legally awarded the mortgaged property through a final legal judgment or decision.

Documentation is the key: probate, deed, decree, settlement agreement or final order should be reviewed before applying ordinary seasoning assumptions.

Official agency baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

These are agency-level rules. AUS findings, mortgage insurance, product restrictions and lender/investor overlays can still affect a real loan.