Fannie Mae is releasing an update to their ubiquitous Automated Underwriting System DU.
One of the unlikely benefactors of the guidelines being installed in the approval "engine" are self-employed borrowers. In the previous versions of the DU software a borrower's self-employed status was considered an additional risk factor. They have now removed this risk factor so the type of employment will no longer be considered in approving the loan.
Fannie Mae did not explain why they made this change but the result will be to make it easier for a self-employed borrower to qualify for a home loan after May 31st, 2008.
If you are self-employed and are curious about how to qualify for a home loan, just send an email and I'd be happy to answer any questions.
Make it a great Thursday!!
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