Robert Krowel & Mortgage News
I wanted to give an update on some new changes that are happening in the Mortgage industry. This is for Fannie Mae and Freddie Mac. As we are getting past the melt down of the Real Estate Industry we are seeing a vast variety of changes to the way we are to Caculate income, how we look at assets, collections, student loans and even self employed borrowers.
Debt To Income - The standard for Fannie Mae Ratios are 38 over 43. Now with saying that with compensating factors we can go up to a 49.9. 1 big one factor is 12 months reserves. This is a huge change to when DU was very strict and we couldn't go past 45 %.
Free die Mac - We are sometimes able to go as high as a 53 % with 6 months reserves and 1 year tax returns.
Assets and Collections - assets are anything in a bank account or retirement account. Depending on the 401 K we can use up to 65% of the balance.
Collections - Medical are not counted when doing a mortgage loan. Depending on the situation it sometimes work in your favor. Other collections depends on what they are. the rule of thumb is if the combined total are more than 2,000 dollars then we need to have them paid off or have a payment arrangement. Best to have them paid off before we have you pre approved so we have no issues.
Self Employed - This has loosened up a little bit over the past few years. It really depends if you are Sch. C or Corporate tax returns. You will want a Mortgage Banker that knows how to read tax returns and know how to structure a loan.
Student Loans - This has gotten worse. We have to use the worst of the payments or % of the balance. This can be a little bit of a pain.
I would suggest if you are a realtor or a Person trying to buy a home. You need to align yourself with a Mortgage Banker that is well versed in this and has the ability to get the loans done in a timely manner. Please feel free to call me at 951.756.3748 or Apply on the Link. Robert Krowel
Thank you,
Robert Krowel
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