Good news for homebuyers! Fannie Mae has eliminated some income-related underwriting requirements, due to new policies in place to address credit history, rental income and financial reserves. These recent changes from Fannie Mae will make the home buying process easier for some to purchase a home.
Effective immediately consumers no longer need 30% equity departure in property in order to use rental income.
Unreimbursed Employee Business Expenses
Unreimbursed employee business expenses for a borrower who is qualified using base pay, bonus, overtime or commission income that is less than 25% of the borrower’s annual employment income no longer are required to be analyzed or deducted from the borrower’s qualifying income or added to monthly liabilities.
Stocks, Bonds, and Mutual Funds
When a borrower is using vested stocks, bonds, and mutual funds (including retirement accounts) for down payment, closing costs, and reserves 100 percent of the value of the asset will be allowed in determining available reserves. If On Q documents that the asset represents at least 20 percent more than what is needed for the down payment and closing costs no documentation of liquidation is required. If that determination is not made then the borrower’s actual receipt of funds from the sale or liquidation must be obtained.
Have questions? Contact an On Q Financial Mortgage Consultant to discuss how the lifting of these restrictions might help you get into the home of your dreams.