Quick update, Fannie Mae just came out and made a temporary change to mortgage guidelines for those borrowers that are affected by the Govt Shut down. This change would be for those not working due to the govt shut down. Here are the specifics:
- This change is for all conventional loans except for High Loan to Value refinances. So it will affect, purchase loans.
- The borrower will now need 2mths of Reserves(aka 2 mortgage payments) or the amount required per Fannie Mae’s mortgage automated approval system. Long story short many loans do not require any reserves, so this change would mean any govt employee that is affected would need to have more money saved vs prior to the temporary change
This change is temporary until the government is back to work. Thou if you are working with a client affected by the shut down, you will want to contact their lender asap to confirm if their loan is affected.