fannie mae: Fannie Mae Increases Down Payments on MyCommunity® and Standard Loans
- 08/21/13 08:12 AM
In another backward-thinking move, Fannie Mae has very subtly announced that they will be increasing their down payment requirements by decreasing their maximum Loan to Value Ratios for MyCommunity® mortgages and for standard mortgages on 1-unit primary residences effective on or after the weekend of November 16, 2013. The previous allowed down payments were at 3% based on a Loan to Value Ratio (LTV) of 97%. The difference between 95% LTV and 97% LTV financing may sound slight but on a macroeconomic level, it’s huge. It will postpone purchases for multitudes of buyers; particularly first time homebuyers who might find themselves … (21 comments)
fannie mae: Getting Pre-Qualified for a Home Loan with a H1B Visa
- 10/08/12 05:22 AM
These days, any time a lender sees a square peg and a round hole, they tend to run for the hills. In the case of homebuyers seeking a mortgage with H1B visa status, too often this is the case. If they’d patiently take the “outside in method” of loan structuring (start with Fannie Mae/Freddie Mac, then check mortgage insurance guidelines and then reference the lenders underwriting guideline overlays), they’d find that these waters are not that hard to navigate and that round hole isn’t as round as it may appear. An H1B visa is a work permit issued by a US … (10 comments)
fannie mae: Fannie Mae Calls for Full Condo Project Reviews (Unless You're Rich)
- 09/19/12 04:36 PM
Many would say that perhaps Fannie Mae should have become tighter on their guidelines for condos back in 2008 and now that they’re seeing recovery, start to loosen up (kind of like the private mortgage insurance companies did). The opposite is happening as clearly Fannie Mae wants to limit their exposure to condos in their portfolio. Periodically, changes are made to Fannie’s underwriting guidelines and their automated underwriting software. Some are small and some are large and impactful. Condo buyers beware as they snuck this one in (effective October 20th): “A limited project review will no longer be permitted on principal residences … (4 comments)
fannie mae: If You Want an Adjustable Rate Mortgage (ARM) You Better Have Cash
- 08/26/12 10:27 AM
Rest assured, if homebuyers or Realtors think they may have a good idea for a low down payment purchase loan program, they needn’t bother thinking since Fannie Mae has decided to make that executive decision on their behalf. As of October 20th, the new choice will be between a fixed rate mortgage, fixed rate mortgage or fixed rate mortgage. What’s best for the homeowner has now been mandated by Fannie Mae. The maximum Loan to Value for ARM’s (Adjustable Rate Mortgages) is being dropped from 97% to 90% for all purchases and no cash out refinances (seriously, this is not a … (13 comments)
fannie mae: What are Compensating Factors When Qualifying for a Mortgage?
- 04/24/11 01:46 PM
Although we wouldn’t know it from watching the six o’clock news, mortgage underwriting guidelines and mortgage insurance underwriting guidelines have been in a pattern of loosening, not tightening. This trend started in late 2009 and continues today with such examples as lower minimum credit scores for mortgage underwriting guidelines and fewer declining markets for mortgage insurance guidelines. As this has happened, another trend has emerged. The phrase “underwriting exception” is coming back in practical contexts rather than a nostalgic reference to days gone by. These days, underwriting exceptions are more and more common where a mortgage loan file has “Compensating Factors.” At … (1 comments)
fannie mae: What are “extenuating circumstances”?
- 03/23/11 02:50 PM
Many people trying to buy a home after a short sale find it difficult to navigate through loan programs that they may be eligible for and various waiting periods that may be applicable. If late payments occur, most people are told that the waiting period for buying a home after a short sale is 3 years because that’s what FHA requires if late payments occur. Then they learn that that Fannie Mae will back a loan for someone after a short sale after 2 years with a 10 percent down payment if there are “extenuating circumstances.” But what are extenuating circumstances? … (7 comments)
fannie mae: Conventional Loan Pricing Scheduled to Hike Rates in Late Spring
- 12/28/10 05:59 AM
As a follow up to Fannie Mae’s recent guideline changes, they will now be taking steps to make conventional loans more expensive across the board. A few years back, Fannie Mae instituted an aggressive round of Loan Level Pricing Adjustments (LLPA’s) and an Adverse Market Delivery Charge (AMDC) to add market risk into their loan pricing. AMDC’s apply to all loans and LLPA’s are based on a combination of credit score and Loan to Value. Here is a before and after picture of the pricing hits that will be effective April 1, 2011
These are not slight adjustments to the consumer’s interest rate. … (12 comments)
fannie mae: Fannie Mae Guideline Changes - Gifts, 97% Financing and Mortgage Insurance
- 11/27/10 03:19 PM
There has been some recent excitement about Fannie Mae (FNMA) changing her guidelines on down payments and allowing gift funds as an acceptable form of down payment in lieu of a borrower’s own funds. Before we all get excited about FNMA getting a little FHA in her with respect to gift funds, we need to realize that the guidelines for mortgage insurance and FNMA are not aligned. So long as they aren’t, this change will only have minimal effect. This chart outlines the new accepted forms of down payment from FNMA’s perspective:
Here's the Fannie definition of acceptable donors for … (3 comments)
fannie mae: Short Sales DO NOT Require a Delinquent Mortgage – “Imminent Danger of Default”
- 01/07/10 08:15 PM
Clearly, many if not most short sales involve a loan presently in default. As well, many times a short sale might involve a current borrower who can currently afford the payment. In several other situations, a seller may be “just hanging on” and the smallest thing could put them irreparably behind on their loan. Welcome to “eminent danger of default.” In a hardship letter for a short sale (also known as short payoff), if a borrower/seller is currently not in default but can justifiably make the case that it is nearly unavoidable despite their willingness if circumstances were otherwise, they can … (49 comments)
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In another backward-thinking move, Fannie Mae has very subtly announced that they will be increasing their down payment requirements by decreasing their maximum Loan to Value Ratios for MyCommunity® mortgages and for standard mortgages on 1-unit primary residences effective on or after the weekend of November 16, 2013. The previous allowed down payments were at 3% based on a Loan to Value Ratio (LTV) of 97%.
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