FANNIE MAE Makes Positive Changes

Dated: 07/22/2015

Views: 568

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Below are Fannie Mae changes for the better:

1.       Conversion of principal residence to investment property:

§  30% equity position not required

§  Rental income calculation and minimum reserves pursuant to standard guidelines will continue to apply.   In other words, there are no unique requirements when someone is converting their existing primary to an investment occupancy,

2.       Adjustment to stocks, bonds and mutual fund requirements to allow a greater percentage to be used in certain instances.

§  100% of the value is permitted when determining reserves.  

§  If the stocks/bonds/mutual funds will be used for down payment and/or closing cost the following guidance is provided:

·         If the value of the combined assets (at 100%) is at least 20% MORE than what the borrower needs, liquidation is not required.


3.       Ability to “ignore” unreimbursed expenses (in some instances).

§  For borrower’s qualified using commission income that is less than 25% of qualifying income,  unreimbursed expenses, union dues and/or other voluntary deductions do not need to be deducted from borrower’s income.


4.       Sale of existing primary residence

§  When a borrower is selling their current residence and it will not close prior to the closing of the subject property, the PITI from the existing primary does not need to be considered provided:

·         There is a fully executed contract of sale for the existing property AND

·         Borrower’s attorney verifies that all financing contingencies have been cleared.    The verification must come from the borrower’s attorney or escrow company and not the realtor.

For questions or more information call me direct at 303-817-6818 or email me at

Denver Co Real Estate- Luba Jeltov
I specialize in Denver Colorado and surrounding communities of metro Denver area. If you are selling your home I will make sure you get TOP dollar. If you are looking to purchase a home I will make sure that you get the best deal possible. Please contact me directly via phone or text at 303-817-6818

Luba Jeltov
Exit Realty Chery Creek
Direct: 303-817-6818 

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Sheryll White

As a Full Time real estate agent for the past 23 years, Sheryll has helped hundreds of home owners in Colorado buy and sell their homes. Sheryll's easy going, no pressure style and her in depth knowl....

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