Fannie Mae to Loosen Mortgage Requirements #homeownership #realestate #investment

Source:  NAR Realtor News

Government-sponsored financing giant Fannie Mae will ease its requirements next month, raising its debt-to-income ceiling from 45 to 50 percent on July 29.  The move could pave the way for a larger number of new buyers to qualify for a mortgage, particularly millennials who may be saddled with student loan debt.

The debt-to-income ration compares a person's gross monthly income with his or her monthly payment on all debt accounts, including auto loans, credit cards, and student loans.  It also factors in the projected payments on the new mortgage.  Lenders see applicants with lower debt-to-income ratios as less at risks of defaulting.

Fannie Mae, Freddie Mac, and the Federal Housing Administration have exemptions that allow them to buy or insure loans with higher rations than the federal rules, which are set at a maximum of 43 percent.  The FHA allows debt-to-income ratios of more than 50 percent in some cases.

Click the link to check out the full story:
http://realtormag.realtor.org/daily-news/2017/06/07/fannie-loosen-mortgage-requirements

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