Howdy, effective 12/12/09 (Saturday), Fannie Mae is implenting some major changes to their underwriting guidelines for conventional loans. These changes are effective immediately on Saturday with the roll out of their DU 8.0 platform. This will be nationwide... all lenders that sell to investors and/or Fannie Mae directly. Click Here for the short video clip outlining these changes...
Here are a few of the changes:
1. 620 minimum credit score
2. 45% Debt to Income ratio and up to 50% only with STRONG compensating factors
3. Credit reports are only valid for 90 days opposed to the current 120 days.
4. All investment property purchases require a minimum of 6 months of reserves
5. 2-unit investment prop's now require a 25% down payment
To hear the other major changes, click here.
Working with a lender that is on top of these changes is only going to help your business. And while I only work in PA there are FAIRWAY Lenders across the States so go find a FAIRWAY lender in your area.
Ken Pederson
Certified Mortgage Planner, CMPS
FAIRWAY Independent Mortgage Corp
Lancaster, PA
www.FairwayPA.com
NMLS: 134943
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