Fannie Mae has changed its mortgage guidelines.
Home buyers and would-be refinancers are finding it tougher to get conforming-mortgage approved.
Conforming mortgages are loans that, literally, conform to the lending standards set forth by Fannie Mae and Freddie Mac.
Often called "guidelines", the standards are the series of checklists that stand between a mortgage applicant, and his loan approval.
Conforming mortgage guidelines include things like maximum loan-to-value limits, and minimum credit score requirements, and they tend to change over time.
Most guideline changes deal in the esoteric and, as such, have limited impact on borrowers
The Winter 2011 changes, however, were "mainstream". They affect everyone.
The Winter 2011 guidelines affected 9 separate areas of the mortgage approval process. They run the gamut from income and assets to documentation and reporting.
A few of the more major changes:
Furthermore, the new guidelines contain a note that former homeowners with a foreclosure on record must wait 7 years before re-applying for a conforming mortgage.
Fannie's new guidelines favor personal income over personal assets; it's not what you have, it's what you earn. Some people will be helped; others will be harmed.
Self-employed persons and those with "good accountants" are especially susceptible.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
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2017 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)