During the weekend of December 12th, Fannie Mae will update DU to the 8.0 release.
Some of the changes that will occur include:
* Maximum DTI to 45% (50% in some cases)
* Minimum FICO score to 620
* New Foreclosure and Deed-in-Lieu of Foreclosure criteria
* New Bankruptcy guidelines
* Approvals will expire 90 days from the date of the oldest credit document in the file!! (previously 120 days, documents include credit, assets, income)
* Percentage allowed for reserves of stocks, bonds, mutual funds, and retirement accounts changing to 60%
* 401K assets can only be valued at 60% of vested interest (previously 70%)
* Stocks and Bonds can only be valued at 70% of value (previously 100%)
CHANGES ARE OCCURRING WITH DU AS OF 12/12/09…. THAT IS ONLY 5 DAYS AWAY. DU WILL AT THAT POINT BE MAXING OUT RATIOS AT 45% BACK END!!!!! (ALLOWANCES PER DU ONLY TO 50%). WE ARE NOT SURE WHAT WILL ALLOW DU TO GO TO 50%, PER EXPERIENCE, IT WILL BE THINGS LIKE LOW LTV’S AND LOTS OF RESERVES THAT WILL QUALIFY FOR THE EXCEPTION TO 50%.
- 2 unit eligibility: The maximum LTV/CLTV for 2 unit properties will be aligned with 3-4 unit properties:
- 2 unit owner occupied fully amortizing only, purchase & rate/term refi: 80% LTV/CLTV/HCLTV.
- 2 unit owner occupied interest only, purchase & rate/term refi: 75% LTV/CLTV/HCLTV
- 2 unit investment property purchase & rate/term refi: 75% LTV/CLTV/HCLTV
- 2 unit owner occupied cash out refinance: 75% LTV/CLTV/HCLTV
- 2 unit investment property cash out refinance: 70% LTV/CLTV/HCLTV.
- Foreclosures: More than 5 years, within 7 years: Owner occupied purchase only will be permitted to a maximum LTV of 90%, minimum credit score of 680. Deed in lieu of foreclosures within 7 years will now receive a Refer with Caution so will be ineligible.
- Bankruptcy: Chapter 13 discharged in the last 24 months, dismissed within the last 48 months, or filed but neither discharged nor dismissed within the last 48 months will receive a Refer with Caution so will be ineligible. Non-chapter 13 bankruptcies that were filed, discharged or dismissed within the last 48 months will receive a Refer with Caution so will be ineligible.