Fannie Mae is set to implement new guidelines that will benefit homeowners who have lost their homes in a short sale or gave the deed on their house back to the bank due to financial problems. Under the new guideline, which will take effect on July 1st, homeowners who’ve done short sales may now reapply for a new mortgage to buy a new home in as little as two years.

Previously, homeowners who lost their homes through short sale or deeds on lieu of foreclosure need to wait at least four years before they can qualify again for a new mortgage from the Washington, D.C.-based government-sponsored enterprise. Fannie Mae did not explain the reason behind the rule change but housing experts believe that the move is aimed at gathering more support for the Obama administration’s relentless drive to reduce the flood of rising foreclosures.

While the new guideline will come as a relief to homeowners, it comes with stricter rules on mortgage borrowing. Under the new rule, borrowers need to come up with a 20% down payment to secure a mortgage in two years. If homeowners can only come up with a 10% down payment, the mandatory waiting period will return to the former four-year minimum.

Homeowners, however, can still obtain a mortgage in two years with only a 10% down payment if they can prove that their mortgage problems were due to “extenuating circumstances” such as loss of employment, divorce, or medical expenses.

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