NewRez will align with the following updates in Freddie Mac Bulletin Mac 2019-25:
Clarification and guidance for income-based resales restrictions:
2-unit eligibility
Cash-out refinance eligible with subsidy provider or program administrator approval
Down payment calculation
Guidance for appraisal adjustments, recognizing that large adjustments are common and acceptable in rural markets.
Condominium Projects with approved Project Waiver Requests (PWR) are eligible as long as the PWR does not expire within 220 days after the Note date.
freddie mac 2019-25
NewRez will align with the following updates in Freddie Mac Bulletin Mac 2019-25:
Manufactured homes are eligible when no borrower has a credit score, per LPA guidelines.
Updates and clarification made to rental income for properties that have not been in service for a full tax year.
A Leave and Earnings statement may be used for verbal confirmation of employment and may be dated 120 days prior to the Note date (previously 30 days).
No-Cash-Out Refinance: clarified that proceeds may be used to pay down junior liens (that were used to acquire the property). Remaining balance must be subordinated.
Frozen credit: No more that one credit repository may be frozen.
In addition, the product profiles and/or overlay matrix has been updated with the following:
Permit singlewide manufactured homes in a Fannie Mae PERS approved project in compliance with Fannie Mae and Freddie Mac requirements.
Added co-ops as an ineligible property type.
Added barndominiums and shouses as ineligible, unique property types.
Added 4506-T requirements for NewRez underwritten loans.
Loans without an address are not eligible (prequalification not permitted).
Properties listed for sale must be taken off the market before the disbursem*nt date (previously Note date) for Fannie Mae refinance transactions. The requirement has been removed from the Home Possible product profile.
With loans from either Fannie Mae or its competitor Freddie Mac, you'll need a qualifying FICO® Score of at least 620. If you're an individual borrower, your qualifying score is the median between the three major credit bureaus – Experian™, Equifax® and TransUnion®.
Fannie Mae is a leading source of mortgage financing in the United States. We don't originate mortgage loans or lend money directly to borrowers. Instead, we purchase mortgage loans made by lenders, who are then able to use those funds to offer mortgage loans to more people.
Recently, Fannie Mae made significant changes that could reshape the way you approach multi-unit property purchases. Starting on November 18, 2023, Fannie Mae will be implementing new guidelines that allow for a Loan-To-Value (LTV) ratio of up to 95% for 2-4 unit properties.
FHA loans offer lower down payment requirements, which could be a deciding factor for first-time homebuyers or those with limited savings. On the other hand, while Fannie Mae loans often require a higher down payment, their flexible options might still make them an attractive choice for certain borrowers.
Credit score: Both Fannie Mae and Freddie Mac require a minimum credit score of 620 for fixed-rate mortgages. However, you may need a higher credit score for certain loan programs or to obtain better interest rates.
Fannie Mae requires minimum net worth of $2.5MM+ (greater of 25bps of Servicing UPB, or 25 bps of Bifurcated deliveries for the past three years) to participate in Servicing Marketplace.
Because Fannie Mae has a minimum qualifying credit score of 620, this should help more clients qualify together on the loan, allowing for the use of all incomes to determine what they can afford.
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