Several people have requested an outline of the upcoming Conventional Loan changes without the video. One person mentioned he has trouble with online videos due to the internet security at his office. As much as I understand that... I don't get it. Video conferencing, video podcasts and video emails are BIG already and only going to become even more common place in our immediate future. Learn it, know it and use it... using video is easy and powerful.
Here is an outline of the Conventional Loan changes that are effective 12/12/09. These changes are coming from Fannie Mae and are for all lenders.
1. 45% back-end ratio or DTI. Up to 50% DTI with strong compensating factors. This is no longer a guideline, it's a rule.
2. Credit reports are only valid for 90 days. Clients that have been PreApproved may need new credit reports and hopefully they have no new debt.
3. Minimum credit score fo 620. Large downpayments do NOT make a difference.
4. Trailing spouse income is no longer eligible for use.
5. Verification of employment on ALL borrowers within 10 days of closing is required.
6. 2 unit Owner-Occupied home purchases now require 20% down payment.
7. 2 unit Non-Owner-Occupied now require 25% down payment.
8. Investment property purchases require a minimum of 6 months of PITI reserves.
9. Bi-Weekly mortgages, due to lack of demand, are being retired.
There are some more changes, but these are the most notable. If you have any questions on this, call me at 431-9299, or shoot me an email.
You are welcome to forward this email to colleagues and clients.
Ken Pederson
Certified Mortgage Planner, CMPS
FAIRWAY Independent Mortgage Corp.
Lancaster, PA
www.FairwayPA.com
NMLS: 134943
Comments(0)