According to Realty Times, beginning October 20th. Fannie Mae will be tightening some of its underwriting standards for condo buyers and home owners wanting to refinance. The new guidlines are aimed at reducing Fannie Mae's risk as well as forcing more borrowers to shop around for mortgages.
Condo buyers who have les than 20% down payment will have to complete a condo questionnaire about the homeowner association's finance goals and supply additional documents such as a reserve study, by-laws and a copy of the master insurance policy.
Expanded Approvals for Fannie Mae refinance will be ended. These approvals were believed to help borrowers qualify for a mortgage when they didn't have a perfect combo of loan-to-value and debt-to-income ratios.
Self-employed will now have to furnish two years of federal income tax returns, instead of one. Underwritiers will then base income on an average of the last two years. One bad year of income could sink a sel-employed home owner's application.
Author:Kelly Olsen Phone: 201-669-7520 Dated: October 10th 2012 Views: 1,565 About Kelly: Having the right real estate agent means having an agent who is committed to helping you buy or sell...
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