..the Fannie Mae pendulum is swinging the changes below at us….

Interest-only loans and amortizations greater than 360 months will no longer be eligible.

• 7/1 and 10/1 ARMS will qualify at the greater of the fully-indexed rate (index+margin) or the note rate.
• 6 month to 5/1 ARMS will qualify at the greater of the fully-indexed rate or note rate + 2%.
• MAXIMUM 95% Loan-to-values. (no more 97% LTV mortgages)
• Deed-in-Lieu Foreclosures or Pre-Foreclosures
  • The lender will need to document that the event was completed 2 or more years from the credit report date.
• Bank statements will be needed covering a 2 month period (as compared to 1 month presently).
• Credit reports will be good for 4 months.
• Quarterly asset statements will be good for 4 months.

What does all this mean to you? Your 800 plus credit scores will no longer trump amended tax returns or self employed income. Your financial records will be scrutinized under a magnifying glass. So…qualify every deposit into your bank account and don’t use your credit cards if you plan on making a real estate purchase.