2 More Mortgage Changes!
(Courtesy of Alec Grebis, Mortgage Coach, Cornerstone Mortgage, www.MNDiscountHomes.com)
The Song Remains the Same…
In the tale of the Credit Crunch, it’s only crunching louder. Mortgage giant Fannie Mae recently announced a change in their credit rules with regard to foreclosures and bankruptcies. In both cases, they extended the length of time someone needs after one of these events before being able to qualify for a Conventional mortgage again. In general, a borrower will now need 5 years after either of these events.
Another Loophole Bites the Dust
During a challenging real estate market like this, a number of innovative ideas emerge to help people be able to still try and buy a home. One of the strategies for people who are not able to sell their home is to rent it out, and qualify to buy a new home because their old mortgage is being covered by the renter. Going forward Fannie Mae will only allow you to do this if you have all three of the following things:
- 30% equity in your home, and
- 6 months worth of mortgage payments for the old home in assets, plus
- 6 months worth of mortgage payments for the new home.
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I think its a good news for mortgagees.they can take advantage from it very well.
In today’s market, it’s almost a daily news story with the changes for financing options for buyers?! I enjoyed this post. I do hope to see a bit of a loosening in the credit markets to give all buyers more leeway in purchasing. Thanks again!