It Could Be More Difficult to Get a Loan – Soon

July 20, 2009 | By Kelley Koehler | Filed Under Loans and Financing 

News from the Mortgage Reports this morning that loan approvals will be getting more difficult soon.

You guys remember when we talked about Fannie Mae?  No, not the chocolates.  The organization that buys loans on the secondary market.

Basically, lenders want to be able to sell their loans to Fannie Mae, so when Fannie Mae comes out with new guidelines, lenders change their guidelines too.  The latest update from Fannie Mae is due to become in effect at the start of September.

You can read the whole article about the new Fannie Mae guidelines here  In a nutshell, your documentation can’t be more than 90 days old, your tax returns and tip income comes under greater scrutiny, stock market assets are only given 70% of market value, and retirement assets are only assigned 60% of market value.  And you can’t use a spouse’s expected income to help qualify, say, when moving to Tucson, until that person actually has a job.

There are also new, more restrictive rules for duplexes, whether you will live in part of the duplex or not.

If you’ve got a loan pre-approval and are waiting on the sidelines, you might want to pick up that phone and have a chat with your lender, see if these new guidelines will impact you and how much you can purchase.  And if you’re looking for a lender, send me an email and I can recommend several excellent ones.

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Comments

One Response to “It Could Be More Difficult to Get a Loan – Soon”

  1. Rick Sack on July 29th, 2009 12:36 pm

    Ditto on lot and land loans. Since 2006 I’ve seen a steady change in not only the tightening of loan terms but a severe decline in the # of lenders who are making these loans. It was not unusual to see 90-100% lot loans( generally a terrible idea for most Buyers and one of the reasons we are seeing so many land foreclosures now), versus the current market with 70% loans available when you can find one. The land loan market is probably changing faster than the residential loan market with new rates ,terms and conditions coming weekly. In the past 30 days, one lender was at 20% down on a 20 year amortized loan at 7% and they just left the market. Its great advice to stay regularly in touch with your lender from very early in the purchase process.

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