Friday, April 28, 2017

Fannie Mae Mortgage Guideline Changes

Thank you Brian Woolley of HomeBridge Financial Services
for providing this information to share with you all!

Nice changes by Fannie Mae:

Debts Paid By Others – this is big!  If you can prove that a debt has been paid by another party for 12 months, it no longer needs to be counted in their debt ratios.  Previously, the debt must have been a joint account with the paying party.

Properties Recently Listed For Sale/Cash-Out Refinances – Fannie Mae will no longer require a 6 month waiting period for a homeowner to take cash out of the property if it has been listed for sale.  It would just need to be taken off the market before funding the cash-out refinance.

Student Loans – Fannie Mae will now accept the payment reported on the credit report.  Many people have income based payments that were previously not allowed and we were to use a higher payment amount for underwriting. 

Student Loan Refinance – if a borrower refinances a home and uses equity to pay off student loans, Fannie Mae will not consider it a “cash-out” refinance and have “cash-out” fees associated with the rate.

Truncated Account Numbers on Bank/Asset Statements – in order to help borrowers protect non-public information, Fannie Mae no longer requires the full account number showing on the bank/asset statements as long as the last 4 digits are showing.

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