The day is December 13, 2010. Fannie Mae is changing its mortgage lending guidelines. It will be good news for some and not for others. How you will be affected depends on your credit profile and type of loan.
The good news is, if you are buying a single-family home, condo or townhome to live in you won’t need Fannie Mae’s minimum 5% personal down payment. It can be made up of 100% gifted or granted funds! If you are buying a second home or multi-unit property, you will still need a minimum personal down payment.
The not so good news involves the two changes dealing with revolving debt.
· Debt with less than 10 payments remaining can’t be waived in debt-to-income ratio calculations.
· If you have debt that doesn’t have a monthly payment on credit, it must be assigned a payment that equals 5% of the outstanding balance.
As far as income verification goes, if you are a salaried worker/applicant whose commission/bonus is less than a quarter of your income, you won’t have to produce as many paystubs for underwriting.
If you want to get around any of this, get your loan application in before December 13, 2010.
Have a great weekend everyone!!!!
Comments(2)