Monday, July 16, 2012

New Fannie Mae Underwriting Guidelines


Fannie Mae just announced some changes to their underwriting guidelines.  Here are a few of the most note-worthy:
  • The maximum loan-to-value (LTV) and combined loan-to-value (CLTV) ratios for adjustable rate mortgages (ARMs) is being lowered from 97% to 90% for 1-unit, primary residences for purchase and no cash-out refinances.  This means you will need 10% down if you're buying a house and financing it with an ARM.  The ratios are being lowered even more for other types of transactions.
  • They are eliminating exterior-only appraisals and property inspections.  This means only full, interior appraisals will be allowed.  No more "drive-by" appraisals.
  • They are raising the minimum credit score for ARM loans from 620 to 640.
These changes will take effect in October 2012, but lenders are free to implement the changes earlier than that if they want to.

So things just got a little bit stricter.  The message?  The government, which now runs Fannie Mae, Freddie Mac, FHA, and VA - the four places where just about all mortgages end up - is not fooling around with foreclosures.  They want to stop them. 


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!


Make sure you check out our web site:




By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

You Need This Much Money to Buy a House


One of the most common questions we are asked is, "How much money do I need in the bank to buy a house?"

If you don't own any other properties other than the house you're going to buy, then all you need is enough money to pay for the down payment and the closing costs.  If the seller is going to be paying the closing costs for you, or the lender is going to be paying them for you, then all you need is enough money to cover the down payment. 

With FHA loans, the money you need to buy a house can be a gift from a relative, so you don't really need any of your own money.

If you own more than one property, then you will need to have reserves in the bank, an investment account, or a retirement account.  The amount of reserves depends on the type of properties you own and the type of loan you are getting for the new purchase.


Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!


Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.