New Fannie Mae Underwriting Guidelines

Mortgage and Lending with The Mortgage Experts at America's Mortgage, a Division of Cherry Creek Mortgage Co. NMLS #241555

Fannie Mae, the company that writes the underwriting guidelines for conventional loans, has made some changes to the income guidelines.

The most significant changes involve variable income. Fannie Mae now explicitly describes "how lenders should evaluate, document, and calculate income that fluctuates, such as hourly pay, overtime, and commission income." In the past, Fannie Mae allowed lenders a great deal of discretion in how they calculated and documented income. That has changed. Now, lenders are told exactly how they must calculate and document income.

Although the changes will probably have a big impact on some lenders, those lenders who are already using "common sense" underwriting will not notice any changes at all. After reading through the new underwriting guidelines, we discovered that Fannie Mae has finally put in writing what we have been doing for years.

This is very good news for real estate agents and borrowers because much of the guesswork has been removed from the loan approval process. If your lender knows the guidelines, their loans will close.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

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By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.


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Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Chis thanks for your positive take on this information.  Working with a professional who knows what they are doing is key to closing a transaction!

Jun 18, 2012 01:14 AM #1
Charlie Ragonesi - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

That is good news. I always thought someone was using the magic 8 ball to calculate if a person qualified

Jun 18, 2012 01:16 AM #2
Gary Frimann, CRS, GRI
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

I will have to check it out.  I'm guessing the stated income did not work out too well?  HA.  I'm kind of glad to see the tightening of credit however.  I think it is best for the economy.  I also think most people who got loans within the past 10 years or so do not realize that it is slightly more difficult.  Gone are the days of easy credit.

Jun 18, 2012 01:19 AM #3
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