Buyer Alert Tighter Loan Criteria from Fannie Mae

Buyer Alert Tighter Loan Criteria from Fannie Mae

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.

Kelly Olsen Headshot
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...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

TAX DEADLINE EXTENDED - The U.S. government will postpone
Historic Low Mortgage Rates The Time To Buy Is NOW - Mortgage rates have dropped to the
Early Spring Selling Season - Good afternoon. As Spring is
Dec 18 2019 691 1 - Listing During The HolidaysIt is a

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Keller Williams Realty Metropolitan
44 Whippany Road
Morristown, NJ