6 Things You Should Know about the New Fannie Mae Loan Updates
If you or someone you know are interested in purchasing a home and qualifying for a Fannie Mae loan, then listen up. On August 16th, 2014 Fannie Mae is going to be making some significant changes to their loan process that can affect you. Here are 6 things you should know about the new Fannie Mae loan updates.
1. Lenders will be able to identify inaccurate reporting information regarding a foreclosure and correct it prior to being submitted to underwriting for approval.
2. Lenders will be able to address multiple foreclosures on a single file which will help homebuyers that are trying to buy after a past foreclosure.
3. Fannie Mae is dropping the median income limit which offers buyers deep discounts in certain situations such as having a credit score in the 600's or purchasing a condo.
4. The waiting period after a short sale or deed-in-lieu is increasing from two years to four years.
5. Fannie Mae will now require a 5% down payment and a minimum credit score of 620 for a Conventional loan in lieu of a 20% down payment and minimum 680 credit score.
6. Buyers with extenuating circumstances can still qualify to purchase after a short sale or pre-foreclosure sale, however strong documentation will be needed to support this claim.
Granting lenders the ability to fix inaccurate reporting gives buyers a chance they didn't have before to repair foreclosure damage. And though previous short sale and deed-in-lieu of foreclosure homeowners will have to wait a little longer to buy, they can bring less to the table at purchase time. We'll know more about the Fannie Mae updates as August 16th approaches, but for now, it looks like many of the changes will be a benefit to potential homebuyers who are looking for a second chance to buy again.
If you'd like more information about the upcoming Fannie Mae updates or would like to learn more about qualifying for a loan to purchase a home in Tucson, please contact the Simply Property Management-Paielli Realty, Team.
Simply Property Management – Paielli Realty, Inc.
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