New England Properties

General Mortgage Loan Guideline Changes - Regarding Debt Ratios

Here is a blog post about the upcoming changes to mortgage underwriting requirements. The requirements are getting tougher, making it more difficult for people to qualify for a home mortgage.

 

Via Tom Burris | Texas Mortgage Dallas Mortgage FHA (DallasLoanGuy.com):

Mortgage Loan Guideline Changes

Capital Market adjustments to guidelines:

Conforming Fannie Mae & Freddie Mac Debt Ratios:

Effective on loans funding after December 12, 2009 the maximum debt ratios are as follows. References to DU 8.0 are due to the pending update to Desktop Underwriter(automated underwriting).

* DTI > 45% must be approved thru DU Version 8.0
* Fannie Mae indicated that debt ratios exceeding 45% require compensating factors. Fannie does not publish a list of compensating factors and it is unknown whether DU 8.0 will approve above 45%

FHA, VA, USDA & Bond Program Loans:

Effective with loans funding on or after December 12, 2009 the maximum debt ratios are as follows.

* Maximum DTI 50% regardless of AUS(automated underwriting) Findings.
* DTI 45% - 50% at the sole discretion of the underwriter who will require measurable compensating factors, including, but not limited to 12 months verified housing history with no late payments. Limited payment shock. Cash reserves. Possible increased down payment.

Minimum FICO on ALL LOANS will be 620..... Gov't or Conforming.
Get ready for 640+ credit score requirements as I believe the tightening will continue.

Borrowers need to prepare themselves to provide more documentation than ever before. Realtors... prepare your clients!!

 

 

Tom Burris
DallasLoanGuy.com

Dallas, TX

http://www.dallasloanguy.com/
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I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!!

 

Texas FHA Loans- DallasLoanGuy

 

 

 

Lew Corcoran
Licensed Real Estate Professional

Best Choice Real Estate Services
133 Turnpike St, South Easton, MA 02375
Phone Toll-Free: (800) 984-3341

Serving Easton MA and the Surrounding Area

 

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0 commentsLew Corcoran • November 21 2009 05:50PM