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Dan the loanman

Fannie - larger down payment

Wednesday, October 23, 2013 - Article by: Dan the loanman - ArcStone Financial Services - Message

Fannie Mae Asks For More Down

Fannie Mae has announced that their guidelines are changing pursuant to requirements for "Qualified Mortgages" as outlined in the Dodd-Frank Act. What does that mean for the average homebuyer? While there are many changes included within these new requirements some of the most important adjustments include the end of Fannie Mae's 40-year amortization, interest only and three percent down payment programs. In addition, the requirements for qualification for adjustable rate mortgages have been tightened up as well.

The elimination of the three percent down payment option removes an important alternative for those who have limited resources for a down payment and do not want to pay the increased mortgage insurance required of a Federal Housing Administration (FHA) mortgage. With the rise in rates this year, 5/1 adjustables have become more popular as well.

These new requirements are to go into effect on November 16. If you or your real estate client's are thinking about purchasing and will be considering an adjustable or a low down payment loan, you should consider acting now as applications must be fully executed by this November date. Contact us for an evaluation of the best low-down payment alternative before this option is taken off the table.

Brought to you by: Dan PaladinPO Box 14512, Long Beach, California 90853877-369-4619 / 562-254-5616dan@loansbydan.comMLO: 85410 | Branch/Company ID: 3094This message is intended only for the intended recipient(s) and it may be privileged and confidential. Please note that any view of the opinions expressed in this e-mail is solely those of the author and do not necessarily represent those of PRMI., and/or its affiliates. If you are not the intended recipient(s), or agent responsible to deliver this message to the intended recipient(s), you are hereby notified that any review, e-transmission, conversion to hard copy, copying, circulation or other use of this message is strictly prohibited and may be illegal. If you are not the intended recipient(s), please notify the sender immediately by return email and permanently delete this message. Thank you.

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