Fannie Mae Down Payment Requirement to Increase in November, Says Mortgage Bank | Virtual-Strategy Magazine


Fannie Mae Down Payment Requirement to Increase in November, Says Mortgage Bank | Virtual-Strategy Magazine.

 

Fannie Mae Down Payment Requirement to Increase in November, Says Mortgage Bank | Virtual-Strategy Magazine

Updates to Fannie Mae’s Desktop Underwriter, known as DU, are not at all uncommon.
Most changes are minor and do not directly impact a buyer’s ability to qualify for financing. In some cases though, a change comes along that directly affects a buyer’s ability to qualify for a home mortgage loan.
While the conventional loan requires 1.5% higher down payment, this can mean considerable savings for homebuyers with other costs associated with the loan.
Conventional loans above 80% Loan to Value (LTV) require Private Mortgage Insurance (PMI). At 95% LTV, PMI rates drop significantly from those rates at 97%.
Meeting the required 45% debt to income (DTI) ratio also becomes easier with a 5% down payment and reduced PMI.
With FHA mortgage insurance now permanent, conventional financing is a reasonable alternative to save consumers thousands of dollars over the life of their mortgage.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/9/prweb11157647.htm
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*

Louisville, KY 40222*

 

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