If you haven’t refinanced yet, don’t wait much longer

Changes to Fannie Mae guidelines may make it more difficult.

On December 12, 2009, Fannie Mae will roll out its latest version of Desktop underwriter – and with it new guidelines that may make it more difficult to get a mortgage. Many people have been waiting to refinance but now is the time to act,

Some of the upcoming changes are:

• Maximum debt to income ratios will now be 45.00%


• There will now be minimum credit scores, regardless of compensating factors


• Increased requirements for borrowers with previous bankruptcies, foreclosures, and deeds-in-lieu of Foreclosure.


• Value of certain assets (e.g. stocks, bonds, mutual funds, retirement accounts, etc.) will be capped at 50% - 70% of actual value


• Greater Loan to Value (LTV) restrictions for 2-unit properties along with greater reserve requirements.


• Many more

While the housing market has shown signs of improvement, foreclosure and delinquencies are still at all-time highs. Fannie Mae is implementing these changes to make sure loans that are made going forward are a higher credit quality than they were in the past. This can significantly impact your ability to refinance and save money.

If you are thinking of refinancing your mortgage, please call me today to see if it is a smart move for you. Time is running out!