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I read a report today that suggests that Fannie Mae, the nation’s largest investor in mortgage loans, may be relaxing some of the guidelines for residential mortgage approval in terms of credit and credit scores. Of course, the guidelines have not been released yet, so it’s anyone’s guess what this will actually mean for consumers.
The report also suggests that guidelines will more clearly define what they will accept. This owudl definitley be a good thing, as I find that lenders will approve loans based upon their own interpretation of the guidelines. AIf they are not clear about what the guidelines actually mean they will err on the side of caution, which transaltes into “ when in doubt, decline the loan.” Because of the QM rule a lot of lenders won’t make mortgages in which the DTI (debt to income ratio) exceeds 43%, but some lenders will make the loans with the higher ratios-as long as they get the proper response from FNMA or Freddie Mac’s automated underwriting engine.
So stayed tuned for information on what the new guidelines are and how they will affect your ability to qualify for a mortgage.
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