Land Park, East Sacramento
and Curtis Park Specialist

FANNIE MAE GUIDELINES TIGHTEN

FANNIE MAE GUIDELINES TIGHTEN

As the real estate and related industries change with continuing legislation, we are continually experiencing a tightening up of the lending institutions. Fannie Mae has just issued their latest guidelines which will be implimented the week of December 12th.A buyer will now be required to have a minimum of a 620 credit score, with few exceptions.Relating to private mortgage insurance, homeowners whose LTV exceeds 80% of the value of their property will be asked to choose between a higher MIP premium month to month or pay a one time fee at the time of recording.Ratios exceeding 45% will no longer be approved unless there is are very strong assets and credit shown by the borrower. In no circumstances can expense ratios exceed 50%.In the final analysis, if a buyer or homeowner is considering a new mortgage, it would be to their advantage to consider executing their loan prior to these new guidelines. DRE #...