which will help some borrowers and hinder others.
The new rules will allow buyers to use grants & gifts from non-profit groups for their minimum 5% down payment.
There was a previous 5% contribution required from borrowers using their own funds with additional money for down payment permitted as a gift. Freddie Mac (FHLMC) is also considering similar guidelines.
In Fort Lauderdale Fannie Mae is cracking down at the same time on debt-to-income ratios, with the maximum ratio on a conventional loan set to drop from 55% to 45% under the new guidelines. There will also be increased scrutiny of payment histories on revolving debt and buyers who have missed a payment will have 5% of the total balance added to their ratios.
Additionally, Fort Lauderdale real estate borrowers who have gone through foreclosure will be excluded from qualifying for a FNMA loan for 7 years, an increase from the previous 4 year limit.
No comments:
Post a Comment