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Established Contributor
frugalQ
Posts: 508
Registered: ‎03-23-2012
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Re: Big Fannie Mae Guideline Changes (short sales, DU Refi+ Making Home Affordable, no more 3% down)

It seems like they are tightening the reins even more. I also wonder what's the next ax to fall.
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Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
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Re: Big Fannie Mae Guideline Changes (short sales, DU Refi+ Making Home Affordable, no more 3% down)

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.

Established Contributor
frugalQ
Posts: 508
Registered: ‎03-23-2012
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Re: Big Fannie Mae Guideline Changes (short sales, DU Refi+ Making Home Affordable, no more 3% down)

I agree that not many people knew about it. However, going from 3% to 5% is a nice chunk of change when going for a 400k mortgage....as in my case.

We have the $$$ for the 5% down without issue. I was just trying to be a little creative to be able to not have a monthly PMI and not have to totally drain our savings. Welp.....that's all gone now.

I always feel that this process is being made harder and harder for people who have stronger files.

Why couldn't they just tighten the rules for 3% down....like you can't have a SS FC or DIL for 7 years or something to qualify? Dag, don't just get rid of the product all together!!

I am so annoyed!!! I get helping those who had past problems, but don't penalize those of us who were blessed to weather the storm.
Capital One QuickSilver 4.5K - AmEx Green NPSL - Amex Hilton HHonors Surpass 7K - Amex BCP 16K - Chase Freedom 3K - Discover IT 7.5K - LOC 2.5K
Established Contributor
frugalQ
Posts: 508
Registered: ‎03-23-2012
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Re: Big Fannie Mae Guideline Changes (short sales, DU Refi+ Making Home Affordable, no more 3% down)

Believe me, my family an I went through issues too because my DH was laid off 3 days before Christmas in 2008, and it was impossible for him to find a job.

So, im not downing anyone who went through issues. I did too. I'm just venting!!

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Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
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Re: Big Fannie Mae Guideline Changes (short sales, DU Refi+ Making Home Affordable, no more 3% down)

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.

Established Contributor
frugalQ
Posts: 508
Registered: ‎03-23-2012
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Re: Big Fannie Mae Guideline Changes (short sales, DU Refi+ Making Home Affordable, no more 3% down)

Yeah,

We'll see what our options are come October when we do our loan app.

I learn so much from this site. I'm sure are a few LO's out there whom I could school. LOL
Capital One QuickSilver 4.5K - AmEx Green NPSL - Amex Hilton HHonors Surpass 7K - Amex BCP 16K - Chase Freedom 3K - Discover IT 7.5K - LOC 2.5K
Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
0

Re: Big Fannie Mae Guideline Changes (short sales, DU Refi+ Making Home Affordable, no more 3% down)

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.

Regular Contributor
boober
Posts: 136
Registered: ‎02-18-2013
0

Re: Big Fannie Mae Guideline Changes (short sales, DU Refi+ Making Home Affordable, no more 3% down)

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???? :smileysad:

 

Will I have to find some way to pay down that extra 2% to get myself down to around 43%?

New Member
last4ever
Posts: 3
Registered: ‎03-17-2011
0

Re: Big Fannie Mae Guideline Changes (short sales, DU Refi+ Making Home Affordable, no more 3% down)

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?  

 

Thanks!   

Community Leader
Senior Contributor
StartingOver10
Posts: 4,545
Registered: ‎03-06-2010
0

Re: Big Fannie Mae Guideline Changes (short sales, DU Refi+ Making Home Affordable, no more 3% down)

Speaking as a Realtor and not a loan officer I would say move your date so you close before the program changes. JMHO.


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