guidelines: 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)
guidelines: Only 10 Reasons a Lender Needs Tax Returns for a Fannie Mae Mortgage
- 05/03/13 03:47 AM
Giving a pound of flesh in income and asset documentation has become the norm but it’s likely that unjustified lender paranoia has led them to ask for a bit too much of their clients. My recent rant on this issue concerned verifying large, non-payroll deposits but now my rage has turned to the simple request of tax returns. I’m not talking about FHA loans, VA loans, RD loans or Freddie Mac loans (although if you’re curious about Freddie, see attached), because if you’re looking for one of these, you’re going to be asked for a lot of paperwork. I’m just talking … (16 comments)
guidelines: If You’re Going to Claim to Occupy Your Home, You Better Mean It
- 03/18/13 03:04 PM
More and more, people are finding that their intent to occupy a home when getting a mortgage may not mean what they think it means. More and more, loan officers are also finding out that it may not mean what they think it means. One of the Mortgage Loan Officer national testing questions asked what intent to occupy meant and the correct answer, for testing purposes, was that the buyer would have to move in within 60 days. Now, both on refinances and on purchases, it’s becoming important to know how long one will be staying there as well. While not … (13 comments)
guidelines: 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)
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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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