Knoxville Home Buyers New Conforming Mortgage Guidelines, Effective September 1, 2009
Starting next week, being approved for a home loan could be much more difficult.
Among the updates:
- Stock options are no longer eligible for “reserves”
- Relocating families can’t use the “trailing” spouse’s projected income
- “Tip” income must be documented and verified
- Lenders must call employers to verify employment
- Lenders must verify tax transcripts against IRS records
But there are other changes, too. As examples:
- Owners and buyers of 2-unit homes are subject to new minimum FICOs with larger downpayment and equity requirements.
- Only 70% of stock, bond and mutual values may be used as reserves
- Only 60% of retirement assets may be used as reserves
Consider this post to be your advance warning. Not everyone that qualifies for a mortgage on Monday, August 31 will qualify on Tuesday, September 1.
Therefore, if you have a pending need for a mortgage — for either a purchase or a refinance — it’s probably best to talk with a lender as soon as possible. The deadline is based on the date of application — not the date of closing.
Read the complete Fannie Mae announcement online.