If you’re in the market to buy a home and are out shopping loan products now, be sure to talk to your mortgage broker about how you may be affected by the new rules Fannie Mae will be putting into effect in December 2010. The full REALTOR magazine article can be accessed via this link.
A short list of the changes:
- How gift funds are handled and the maximum amounts allowed.
- Debt-to-income ratios adjusted down from 55% to 45%.
- Review of revolving debt payments may hamper ratios even further.
- Borrowers with a foreclosure on their record will now have to wait up to 7 years before being approved for a Fannie Mae backed loan (up from 4 years).
