FANNIE MAE Makes Positive Changes

Dated: 07/22/2015

Views: 669


Image title


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 [email protected]

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 
Email: [email protected]        
www.lubasellsdenver.com

Blog author image

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....

Latest Blog Posts

Your First Step in Buying a Home

Pre-ApprovaL:YOUR 1st Step In Buying A HomeIn many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to

Read More

Your First Step in Buying a Home!

In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often

Read More

New Listing - Denver - Under $175,000

You will fall in love with this 2 bedroom condo located at5995 W Hampden Avenue, H14 in Denver.   Centrally locatedoff of Hampden between Sheridan and Wadsworth. This home has been

Read More

7 Signals The Home You Are Looking At Will Have a Solid Resale Value

While it might seem premature to think about selling a home before you even buy it, it's important to remember that a house is an investment. And in an ideal world, investments make&

Read More