Money's Too Tight To Mention!
As of September 1, 2009 - conforming mortgage approvals just got a little harder to get - so do your homework before you jump into a situation that leaves you swimming as you wait for your place to close! I just had a client get hung up, and she is pacing the floor waiting to close.
Due the high levels of unemployment, mortgage fraud, and the state of the market in general, Fannie Mae announced the changes and here they are for your perusal:
Credit, income and asset documentation must be no more than ninety days old - the old rule of 120 days is no more!
Lenders must see the actual federal tax returns as income documentation - that used to be reserved for borderline mortgages!
If you rely on tips for income, from now on you'll have to provide documentation to add that to your income list.
Stocks won't be used at current market value - at best they will be assessed at 70% of current market value - yikes!
Income from actual jobs - not anticipated incomes - will be required to determine mortgage worthiness!
Retirement assets will be counted at 60% of current value as opposed to the 70% they used to receive!
Two unit homes will now have a higher FICO score threshold - so check with your mortgage manager to see what effect that will have on you.
The current trend is all Fannie, Freddie, FHA, and VHA in the mortgage game - you'll notice that you don't see all of those mortgage advertisements that used to litter the TV screen!
Some hate it, some love it - it's here for the time being, and I don't want you to be lost in the fog when you go mortgage hunting.
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