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Desktop Underwriter (DU) is going through another makover tomorrow!

By
Mortgage and Lending with Gateway Funding NMLS#133257

Desktop Underwriter (DU) is changing again tomorrow. Fannie Mae’s automated approval process is undergoing another makeover to accommodate the new thinking at Fannie Mae. They are no longer allowing a 3% down payment. The maximum financing with a Fannie Mae loan is 95%. They are retiring interest-only and 40-year amortization terms.

 

While to some borrowers this will be a push to FHA financing that has become more expensive lately it will also push some buyers to the sidelines. Fannie Mae serves a very good purpose in the mortgage lending environment making funds more readily available to interested lenders. This just seems to be yet another blow to the real estate market that can ill afford another hit.

 

Not all is lost however. In Pennsylvania there is a 97% financing program with pre-paid mortgage insurance that is extremely competitive with FHA and the NEW Fannie. I suggest that everyone check their individual state programs to see the alternatives available.

I recently converted several borrowers from FHA and Fannie programs to the State program and saved them a lot of money on a monthly basis.

Comments (1)

David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct
Very interesting thanks for the heads up will be passing the information along.
Nov 14, 2013 01:10 AM