| Fannie Mae will soon be implementing new mortgage | | | | Non-owner Purchase 1-2 units |
| guidelines that will affect an enormous amount of | | | | 90%/90% (CURRENT) |
| home owners, investors, and soon to be home buyers. | | | | 85%/85% (NEW CHANGE) |
| These major changes have to do with allowable loan | | | | Non-owner Rate/term Refinance |
| to values on a number of different mortgage types. | | | | 1-2 Units 90%/90%(CURRENT) |
| For those of you who do not know what loan to value | | | | 75%/75% (NEW CHANGE) |
| (LTV) is, it is the the ratio of the mortgage balance | | | | Non-owner cash-out Refinance |
| over the home's value. For example, if you take out an | | | | 1-2 Units 85%/85% (CURRENT) |
| $80,000 mortgage on a $100,000 home, the LTV = | | | | 75%/75%(NEW CHANGE) |
| 80% | | | | As you can see, these new changes will greatly |
| See the pending changes below: | | | | affect the allowable loan to values on several different |
| Primary Residence Cash out Refinance | | | | types of mortgage transactions. This can be seen as |
| 1-2 Units 90%/90% (CURRENT) | | | | a positive thing as Fannie Mae and Freddie Mac are in |
| 85%/85% (NEW CHANGE) | | | | desperate need of stronger investments. Gone are |
| 660 score required if LTV >75% | | | | the days of 100% Loan to Value home for Investors |
| Second Home Cash-out | | | | and even first time home buyers. 100% Rural |
| Refinance | | | | programs and VA still have 100% for those that |
| 1 Unit 85%/85% (Current) | | | | qualify. |
| 75%/75%(NEW CHANGE) | | | | |