Effective December 12, 2009 the eligibility requirements for approval of a home purchase or refinance will get tougher. I will highlight a few of the changes below.
The maximum allowable total expense ratio will be lowered to 45% with flexibilities offered up to 50% with strong compensating factors.
Fannie Mae is modifying the minimum representative credit score requirement for all loans delivered to Fannie Mae to 620.
There are several other industry changes that will be implemented as of December 12 but these two items are the major highlights for potential borrowers. As always if you have any questions regarding these new changes please feel free to consult myself or your trusted mortgage professional.
Posted by Randy Ratchford Mortgage Planner/Partner. Randy can be reached toll free 877-627-9211 ext107 or email RRatchford@HorizonFinancial.org
