Great News for Homebuyers |Now Easier to Qualify for a home

Great news homebuyers, it is now easier to qualify for a Fannie Mae conventional mortgage. Effective July 29 Fannie Mae has made changes to their automated underwriting engine. These changes enable lenders like the Richard Woodward Mortgage Team of Service First Mortgage the ability to create more homebuyers. We are very happy that Fannie Mae has decided to increase homeownership opportunities to our customers.

If you are a homebuyer that was recently turned down because of debt to income ratio or because you could not find a home in your price range, give us a call today at 214-945-1066 and let us take a second look at your file. Not all lenders are created like. Richard Woodward has been originating home loans for homebuyers for over 17 years and understands the nuances involved in getting mortgages approved. Ultimately our goal is to make the home buying process as obtainable and easy as possible. Check out our reviews here.

Here are the highlights in a video that I created:

Among the more significant changes accompanying the new version are the following.

[icon name=”circle” class=”” unprefixed_class=””]The maximum allowable debt-to-income (DTI) ratio that can be submitted in DU will be 50%. For DTIs between 45 and 50 percent, certain additional compensating factors will no longer be required. Cases exceeding a 50 percent DTI will receive an “ineligible” recommendation.
[icon name=”circle” class=”” unprefixed_class=””]The criteria that determines the documentation required to verify a self-employed borrower’s income will be updated and the number of DU loan casefiles eligible for the one year of personal and business tax return documentation requirements will increase.
[icon name=”circle” class=”” unprefixed_class=””]The maximum allowable LTV, CLTV, and HCLTV ratios (LTV ratios) for adjustable-rate mortgages will be aligned with fixed-rate mortgage LTV ratios for all transaction, occupancy, and property types, up to a maximum of 95%. Additional information on the effective dates of this change will be available in the Selling Guide.
[icon name=”circle” class=”” unprefixed_class=””]A loan casefile with a disputed tradeline that is approved with that information will no longer require further action. If such a loan casefile does not receive an Approve recommendation, the lender must determine the accuracy and completeness of the tradeline information. If the borrower is responsible and the information accurately and completely reports the account, then the lender may manually underwrite the loan if it is eligible. Tradelines reported as medical debt will continue to be excluded from the disputed tradeline identification and lenders are not required to investigate disputes.
[icon name=”circle” class=”” unprefixed_class=””]DU is regularly reviewed to determine if its risk analysis is appropriate. Version 10.1 will include an update to this risk assessment and it is expected to increase the percentage of Approve/Eligible recommendations received by lenders, particularly those with DTI rations between 45 and 50 percent.