Just in the down payment department - the guidelines overall will allow more people to qualify. The difference between 3% & 5% down isn't that much. People said the same thing when Fannie Mae eliminated their 100% financing program, then they had to put 3% down... just makes people save up a little more. Honestly not everyone knew about the 3% down Fannie Mae option either, majority of people just assumed 5% down was required on conventional.
I agree it stinks, it was one of my biggest niche products I was able to offer my clients. Freddie Mac did away with their program years ago, so it's not too surprising Fannie Mae finally eliminated theirs too. Yeah another $8k down payment isn't fun to save for, but you will get a little better interest rate at 95% LTV than 97% LTV to make up for it.
Most LO's don't know half the stuff that is discussed here. There is a loan officer forum I visit and I'm amazed as some of the questions they ask - of course everyone has to learn somehow but you'd think someone in the industry could at least look through the provided guidelines.
Can someone please tell me what and how these new changes will affect those looking to refi under HARP?
I qualify for HARP, my home is with Fannie Mae, but my DTI is right around 70% or so, I'm paying it all down, and by around February of 2014, my DTI will be around 45%, but it appears as though that won't matter since all loans are being capped out at 43%?!?!
Will all my efforts be for naught????
Will I have to find some way to pay down that extra 2% to get myself down to around 43%?
Here's our situation.
We went under ratification yesterday, and preapproved for the 97% LTV. Our sellers wanted 60 days to close, which puts us at a Nov 14th closing date. Our loan officer said we should go forward, but that their investors may pull the program before Nov 16th.
Should we insist on moving the closing date up, and by how much?
Speaking as a Realtor and not a loan officer I would say move your date so you close before the program changes. JMHO.