Fannie is Your Friend

At the end of 2015, Fannie Mae made some changes to their loan programs that will make it easier to qualify for conventional loans.  These changes include:

• This one is our fav: Up to 95% loan to value on high balance loans ($474,950 in our area – it used to be only 90% on high balance and 95% up to $417K)
• Non occupant co-borrowers (…Mom & Dad) can now blend their income with the primary borrower, allowing the borrower to qualify for more.  In most cases the maximum a borrower can go when co-borrowing will be 95% loan to value ratio.
• Self-employed borrowers will now get the opportunity to submit only one tax return, instead of two (subject to automated approval). 
• HomeReady is Fannie Mae’s new affordable conventional lending product (it used to be My Community) to help low to moderate income borrowers purchase or refinance their first home.
• Here are some highlights:
  • 97% loan to value on purchases
  • Non-occupant coborrower allowed – coborrower income does not count against income limit eligibility
  • Lower mortgage insurance
  • Education is required for this product

Call the Easterbrook Team

For Purchase, Refinance, and Pre-Purchase Loan Counseling

John Easterbrook NMLS#226555 916.224.7653 Patty Aguon NMLS#994635 916.833.5063
EasterbrookTeam@spmc.com 916.850.6050