Lender's Tighten Debt Ratio

After today, 11/14/2008, all conventional loans with FNMA guidelines will require a 45% debt ratio or less.  What does this mean?  If you have a client under contract and is not locked into an interest rate and their debt ratio is in question, have it checked out.  If you or someone you know is thinking of a refinance and your debt ratios are in question, don't wait for that 'magic rate' that will most likely never come.  Get the loan locked in and move on.  You may not even have a loan after today unless your debt decreases, income rises or lower your borrowing expectations. - Scot