As of late last year Fannie Mae made a change to their Home Path loan program. Home Path is when the property is owned by FNMA and is in need of "light renovation" Typically about 3k in repairs. We see alot of demand for pre-approval letters for the Homepath but every time we price one out versus FHA or the FHA 203k program the overall payment is superior against the HomePath. Anyway the change is as follows.
Source of down payment will no longer be eligible if unsecured funds from a relative, domestic partner or fiancee.
It must be YOUR money not a gift. For superior options to HomePath just give me a call or email and I will be happy to walk you thru the process. Hope this helps.
Sunday, February 27, 2011
Friday, February 25, 2011
Changes to loans for 2011
Just wanted to give a quick update on some of the changes that are now in effect. None of them are good for borrowers but it is what it is.
1. A foreclosure with in 7 years renders a borrower unable to get a loan regardless of circumstances.
2. All revolving debts must be included in DTI ratios no matter how many payments remain. Old rules allowed exceptions if payments expired in less than a year.
3. Conventional loans require credit to be repulled not less than three days before closing.If additional debts are found or the score has dropped the rate could change or the loan could simply be denied.
4. All credit inquiries within 120 days must be addressed to determine if more credit was obtained, the old rule was 90 days.
These are just a few of the changes that are making it tougher and longer to obtain a loan. And more expensive but the market is paying heavily still for the excess from years past.
Please consult with a qualified loan officer to see if any of these changes could possibly derail your purchase or refinance.
1. A foreclosure with in 7 years renders a borrower unable to get a loan regardless of circumstances.
2. All revolving debts must be included in DTI ratios no matter how many payments remain. Old rules allowed exceptions if payments expired in less than a year.
3. Conventional loans require credit to be repulled not less than three days before closing.If additional debts are found or the score has dropped the rate could change or the loan could simply be denied.
4. All credit inquiries within 120 days must be addressed to determine if more credit was obtained, the old rule was 90 days.
These are just a few of the changes that are making it tougher and longer to obtain a loan. And more expensive but the market is paying heavily still for the excess from years past.
Please consult with a qualified loan officer to see if any of these changes could possibly derail your purchase or refinance.
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