Fannie Mae recently announced some changes to the Selling Guide. The following changes are effective immediately for loans submitted to Crescent under Fannie Mae’s requirements.
Student Loan Payments
If a payment is provided on the credit report, that amount can be used for qualifying purposes. If the credit report does not identify a payment amount (or reflects $0), the lender may use either 1% of the outstanding balance, or a calculated payment that will fully amortize the loan based on documented loan repayment terms.
Debts Paid by Others
Documentation requirements to exclude a NON-MORTGAGE debt from qualifying ratios have been simplified. Non-mortgage debts included installment loans, student loans, and other monthly debts as defined in the Fannie Mae Guide. When documentation is provided to show the debt has been satisfactorily paid by another party for the past 12 months, then the debt can be excluded from the debt-to-income ratio calculation. This applies regardless of whether the other party is obligated on the loan.
NOTE: This does not apply if the other party is an interested party to the subject transaction such as the seller or realtor.
Student Loan Cash-out Refinance
The update introduces the student loan cash-out refinance feature, which provides the
opportunity to pay off one or more student loans through the refinance transaction. The loan level price adjustment that applies to cash-out refinance transactions is waived when are all requirements for this feature have been met.
The student loan cash-out refinance feature contains elements of both a cash-out refinance and a limited cash-out refinance transaction as described in the table that follows.
Text or call phone: (502) 905-3708
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Fannie Mae Foreclosure listings in Kentucky and Jefferson County!
Government Mortgage Products available to Kentucky First Time Home Buyers in 2014
KENTUCKY FHA MORTGAGE LOANS
- Min FICO 600
- Non-Occupant co-borrowers allowed
- 100% Gifts Allowed from family members
- Manual UW allowed but must keep debt to income ratios at 29/41% respectively and have a verifiable rent history ox30
- Non-credit qualify Streamlines No income or credit report required
KENTUCKY VA MORTGAGE LOANS
- Min FICO 620
- Manual UW
- 100% Cash Out and Zero Down Payment Home loans. Must have COE
- IRRRL OR KENTUCK VA STREAMLINE REFINACE
KENTUCKY RURAL HOUSING AND USDA RURAL HOUSING LOANS
- Min FICO 620
- 100% Max LTV, no money down financing.
- Manual UW but must have debt to income ratios of 29 and 41% respectively with a verifiable rent history 0x30
- 100% Gift Funds allowed
Kentucky Conventional Housing Loans
- 95% Financing available
- Lower mortgage insurance premiums than FHA and max loan is about $100k higher in Kentucky for A Fannie Mae Loan vs. FHA Loan
Fannie Mae Offers Closing Cost Assistance on HomePath®
On February 13, Fannie Mae announced that homebuyers may receive up to 3.5% in closing cost assistance when they purchase a HomePath® property in 27 states during the FirstLook™ period. To be eligible for the incentive, the initial offer must be submitted between , and the loan must close on or before May 31, 2014. Please refer to the February 13, 2014 Fannie Mae News Release orHomePath.com for additional details and a list of states.
Senior Loan Officer
phone: (502) 905-3708
CONFIDENTIALITY NOTICE: This message is covered by the
HomePath Financing for Kentucky Homebuyers 2012
|HomePath Mortgage loans have the following characteristics:||HomePath Renovation loans have the following characteristics:|
|HomePath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed.
Benefits to You, the Borrower
|HomePath Renovation Mortgage allows a borrower to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation – up to 35% of the as completed value, no more than $35,000.
Benefits to You, the Borrower
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- Deducting Mortgage Interest FAQs (turbotax.intuit.com)
- Learn how to avoid the clutches of Private Mortgage Insurance (PMI) (choiceofhomes.com)
- New paradigm for BFS, Non-income qualified borrowers (donaldbwilson.wordpress.com)