Looks like guidelines are changing on us. Here are some coming down the pipeline from Fannie Mae, set for December 13th:
1) Bankruptcy and foreclosure need to be seasoned for 48 months now; used to be 24.
2) Authorized user accounts on credit are going to be scrutinized more. **Note~if someone does not have a credit score/history, we can STILL build credit from other sources. 401K payments, cell phone payments, utility payments, etc.
3) We still have lenders that will do a refi, either cash out or not, after a property has been listed. Could be nice for someone that had a home on the market, but has since pulled it.
4) Number of financed homes has been limited to 4; used to be 10.
5) The use of rental income useage (straight from Fannie Mae guidelines). This is if you are converting a primary residence to a rental, and wish to use the rental income:
Fannie Mae will continue to permit up to 75 percent of the rental income to be used to offset the mortgage payment in qualifying if there is documented equity of at least 30 percent in the existing property (derived from an appraisal, AVM, or BPO, minus outstanding liens).
The rental income must be documented with:
| • | a copy of the fully executed lease agreement; and |
| • |
the receipt of a security deposit from the tenant and deposit into the borrower’s account.
Keep in mind that these changes are going to be part of the system upgrade on December 13, 2008. BUT, most lenders have implemented these already in anticipation of the change.
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When are we going to get some guideline relief?!?
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