| As a reminder, Fannie Mae has recently rolled out new | | | | Though none of these requirements are entirely |
| lending guidelines effective September 1, 2009. Moving | | | | unexepcted, there are three new ones that may |
| forward, getting a home loan approval may be a lot | | | | surprise or seem new to some: |
| more difficult for some borrowers. The new rules | | | | 1. Owners and buyers of 2-unit homes will now be |
| signify the first major mortgage loan underwriting | | | | subjected to revised minimum credit scores (FICOs) |
| update since April of 2009. What's clear is that these | | | | with larger required down payments and equity |
| latest changes are designed to provide further | | | | requirements. |
| protections against mortgage fraud. | | | | 2. Only 70% of stock, bond and mutual values may be |
| Some of the main Fannie Mae updates include: | | | | used as reserves |
| 1. Stock options will no longer be accepted as eligible to | | | | 3. Only 60% of retirement assets may be used as |
| count towards one's " reserves" | | | | reserves |
| 2. Familes that are relocating will no longer be able to | | | | Consider this post to be your advance warning. Not |
| use the "trailing" spouse's projected income to reduce | | | | everyone that qualifies for a mortgage on Monday, |
| Debt to Income "DTI" ratios | | | | August 31 will qualify on Tuesday, September 1. |
| 3. "Tip" income from table waiting and other tipped jobs | | | | Therefore, if you have a pending need for a mortgage |
| must be documented in order to offset your DTI | | | | -- for either a purchase or a refinance -- it's probably |
| 4. Previously given an option, lenders must begin | | | | best to talk with a lender as soon as possible. The |
| contacting all employers to verify employment status | | | | deadline is based on the date of application -- not the |
| 5. Lenders must verify tax transcripts against IRS | | | | date of closing. |
| records | | | | |