What are the Fannie Mae guidelines?
Fannie Mae guidelines for conventional mortgages
| Fannie Mae guideline type | Minimum requirement |
|---|---|
| Credit score | 620 |
| Total debt-to-income ratio | Cannot exceed 45%, with some exceptions up to 50% |
| Cash reserves | Up to six months, depending on credit score, down payment amount, DTI ratio, occupancy type and property type |
What are Fannie Mae seasoning requirements?
The borrower has not had a 30-day delinquency in the 12-month period that precedes the lender’s delivery of the loan to Fannie Mae. If the current borrower assumed the loan and has owned the property for less than 12 months, he or she must have had no 30-day delinquency since purchasing the property.
What is a Fannie Mae Amendment?
The Fannie Mae Flex Modification offers eligible homeowners mortgage payment relief by extending the term to 480 months and targeting a 20% principal and interest reduction. The modification may also result in a lower interest rate.
Does Fannie Mae require a 2 year work history?
Most traditional lenders require two years of consistent work history whether you are self-employed, or a w2 wage earner. This work history requirement is found in all Fannie Mae and Freddie Mac loans and is driven by the federal government.
What is the 6 month seasoning requirement?
Fannie Mae Cash Out Seasoning If a lender goes by Fannie Mae guidelines, the seasoning requirements are as follows: You may be eligible for a Fannie Mae cash out refinance with a conventional loan if the property was purchased at least six months prior to the disbursement date of the new mortgage.
How old can an appraisal be for Fannie Mae?
12 months
The age of the appraisal report must be less than 12 months from the note date of the subsequent transaction. If the appraisal report is greater than four months from the date of the note and mortgage, then an appraisal update is required.
What is the current Fannie Mae modification interest rate?
Fannie Mae Modification Interest Rate Exhibit (06/07/2022)
| Effective Date | Interest Rate |
|---|---|
| April 14, 2022 | 4.375% |
| March 14, 2022 | 3.875% |
| February 14, 2022 | 3.500% |
| November 15, 2021 | 3.125% |
How long are income docs good for Fannie Mae?
four months old
All credit documents must be no more than four months old on the note date (that is, the closing date of the construction loan). Additionally, income, employment, and credit report documents must be no more than four months old at the time of conversion to permanent financing.
How does Fannie Mae look at gaps in employment?
Fannie Mae technically does not have any job gap maximum allowed limit like Freddie Mac. Technically a borrower can be out of a job for years and come back to the workforce along with a letter of explanation and would be okay. Only full time hourly or salary is allowed in these cases.
What was the Fannie Mae scandal?
16, 2011 — The Securities and Exchange Commission today charged six former top executives of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) with securities fraud, alleging they knew and approved of misleading statements claiming the companies had …
What did Fannie Mae do wrong?
That shouldn’t come as a surprise. Fannie and Freddie did not securitize any loans that met the industry definition of “subprime,” and the loans in their riskier securities—commonly identified as “subprime-like” or “subprime equivalent”—experienced delinquency rates that mirrored the prime market.
Do you have to wait 6 months for delayed financing?
Via a special Fannie Mae program known as Delayed Financing, U.S. home buyers and real estate investors are no longer required to wait 6 months post-closing to refinance a home bought with cash. You can now refinance your home within 24 hours of its purchase, and still get access to today’s great rates.
How long is a Recert of value good for Fannie Mae?
The age of the appraisal report must be less than 12 months from the note date of the subsequent transaction. If the appraisal report is greater than four months from the date of the note and mortgage, then an appraisal update is required.
How long is an appraisal good for Per Fannie Mae?
Fannie Mae appraisals are usually valid for 12 months, but they also require an appraisal update after the first 120 days.
What is the difference between refinance and modification?
Unlike a refinance, a loan modification doesn’t pay off your current mortgage and replace it with a new one. Instead, it directly changes the conditions of your loan. It’s also important to know that modification programs may negatively impact your credit score.