New Fannie Mae Policies Make Home Buying Easier

Back in June, we mentioned that Fannie Mae was on the verge taking some big steps to loosen some of its lending restrictions.

The time has come, for new guidelines involving income, assets and credit to take effect, and they are worth revisiting.

Here are the key takeaways –

Higher debt ratios allowed. Now up to 50% — This is an increase from 45% and will make it easier for more people to quality for loans.
Co-signors added to help loan qualification – Now in addition to funds, the credit strength of co-signors can be applied to the loan. This is a significant benefit for first-time buyers.
Use lower student loan payments – Lending agencies have been relaxing their guidelines for adults with significant college debt.
Lower down payment options – This is a frequent stumbling block for new home buyers. The Fannie HomeReady program offers flexible guidelines.
Lower monthly payments through reduced PMI rates – Private Mortgage Insurance (PMI) programs cover a wide range of options for home buyers and can often help them put down a small amount for their downpayment.
Higher loan size limits – Conventional loan limits had been placed at $417,000 since 2006 … until now. The new limit is $424,100 and qualified loans can go as high as $636,150 in some circumstances.
Easier self employed qualifying – Traditionally, self-employed folks found it difficult to provide satisfactory documentation that would streamline their loan process. As of last weekend, Fannie’s Desktop Underwriter has simplified this as well.

Do you get the impression that Fannie Mae is serious about helping people purchase homes?

Sanford’s Team Move office can provide even more specifics and help to tailor an ideal, customized arrangement for prospective home buyers. Please review this detailed blog post about Fannie Mae updates. Then call 919-777-0114 for assistance and answers to your questions.

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