Jan 11
28
Fannie Mae Guidelines Changed December 14, 2010
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For those who like to keep up with what’s going on in the mortgage companies, you might want to know what changes were made to Fannie Mae guidelines. Here’s a little cheat sheet to give you an idea:
Guidelines are changing across 9 separate areas of the mortgage approval process. Collectively, the updates figure to impact nearly everyone in want of a conforming home loan. They run the gamut from income and assets to documentation and reporting.
A few of the more major changes:
- The 97% “Flexible Mortgage” is eliminated, replaced by a standard 97% loan subject toloan-level pricing adjustments
- Borrower “minimum contributions” are eliminated for 1-unit purchases with at least 3% down. Gifts and grants are permissible sources for a downpayment.
- All revolving debt must be included in debt-to-income ratios, regardless of whether there’s “10 Payments Or Less”. If there’s debt, it must be counted.
- A 5% monthly payment against the balance must be assumed when no minimum monthly payment can be verified via the creditor, or the credit bureaus.
Furthermore, the new guidelines contain a note that former homeowners with a foreclosure on record must wait 7 years before re-applying for a conforming mortgage.
Related posts:
Agi Anderson, CDPE, compiled changes made to Make Affordable HARP refinancing program, October 2011 ~ to see if you qualify, just enter your name and email to request HARP guidelines. (make sure to check spam for email confirmation)
