Freddie is now getting rid of Accept Plus Findings. That's huge. It's basically elimating stated findings. Further, Freddie is allowing AUS or Automated Underwriting Findings with a DTI or Debt To Income of over 45%, but FREDDIE HAS STATED THAT IT WILL NOT BUY any loans with DTIs over 45%. Now there are a few modifications and exceptions, but basically the writing is on the wall. Freddie doesn't want to endure the same issues that the sister, FANNIE, has endured.
FHA already allows things that Freddie and Fannie don't.
Non-occupant Co-borrowers;
No true credit score requirement;
All of the downpayment can come in the form of a gift;
FHA loans are assumable;
Loan Limits for FHA have been greatly increased;
Appraisals have been relaxed so as to mirror the more forgiving guidelines of Fannie and Freddie.
FHA is an awesome program. Freddie is making it more attractive. If you want more information feel free to contact me.
As a by the way, in my hurried state, my friend Jeff Belonger, caught me being a little too harried. So as a point of elaboration: •1) Conventional Non Occupant Co=Borrowers are allowed, but it's required that the borrower have ratios that are 38/43 or better. No such borrower qualification exists for FHA loans;
•2) Credit score requirement....the 4155 says the fact that lack of credit is not sufficient reason to deny an applicant. Needless to say, those with scores need to minimally get through an AUS or Automated Underwriting System, but most lenders won't buy a loan under 580, 560 and almost universally under 540 despite AUS accept findings;
•3) On the gift info, I should have elaborated, 20% or more as a gift from a from a relative on a conforming loan will work as well....however, most people don't have that ability.
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