Fannie Mae Loosens Their Mortgage Guidelines

Today I’ve got some exciting news to share with you about the recent changes to the Fannie Mae mortgage guidelines.

Buying a home? Click here to perform a full home search

Selling your home? Click here for a FREE Home Price Evaluation 

Call me at 303-974-9471 for a FREE home buying or selling consultation to answer any of your real estate questions.

Fannie Mae has made four important changes to the mortgage guidelines that will definitely impact homebuyers. 

First, they’ve loosened up the debt-to-income ratio. It used to be that only 45% of your income per month could go toward debt of any kind, including car payments, mortgage, or other payments. They’ve now upped that number to 50%, giving you a little more room to find the right home and still be able to afford it.

The second thing is that loan-to-value is now going to be in the same range for adjustable rate mortgages and fixed rate mortgages. It used to be that these weren’t equal or similar in value due to the debt-to-income ratio, but that has changed.

Self-employment documentation used to be far more complicated, with the requirement being that you needed to have two years of verifiable self-employment income in order to get a loan. Fannie Mae has now reduced that requirement to just one year of verifiable self-employment income, making it easier for anyone who is self-employed to get a home loan.

Finally, we’re seeing some changes to how Fannie Mae treats relocations. It used to be that anyone who needed to relocate for a new job needed to provide one or two months of income from the new employment before they could get a loan. It would slow the entire process down and make it difficult to relocate.

“

We’re seeing some changes to how Fannie Mae treats relocations.

”

Fannie Mae is now accepting a letter of employment from your new employer as proof of your relocation and will be able to approve a loan faster. This means that you can get the loan before you even start the job and finish your relocation on a faster timetable.

It’s great news to see these changes with the mortgage guidelines, as it helps people enter the market and finally get the home of their dreams. If you have any questions about this topic or you’re looking to buy or sell a home, please give me a call. I’d be happy to help!

How We Can Find a Match for Your House

As real estate agents, one of our specialties is playing matchmaker for home sellers who don’t want to put their home on the market.

Buying a home? Click here to perform a full home search

Selling your home? Click here for a FREE Home Price Evaluation 

Call me at 303-974-9471 for a FREE home buying or selling consultation to answer any of your real estate questions.

“Matchmaker, matchmaker, make me a match.”

That’s a famous line from the movie “Fiddler on the Roof,” and it’s the life we Realtors live. Our job is to play matchmaker. Once we find a match, we then become like wedding planners. It’s a fun circle of life we live in, and being a matchmaker is something you can take advantage of. 

If you have a house you want to sell but don’t want to put on the market or have it be known that it’s for sale, you can let us know so we can find a buyer for that house. Part of the joy of having so many clients and being in the business for so many years is having a healthy reserve of buyers possibly looking to buy homes in your neighborhood. 

I’d love to play matchmaker for you, so if you have a house you want to sell and you’d like to see if I can find a buyer for that house, give me a call and we’ll put your house on our “pocket listings” list. When we find new buyers, we’ll match the house, cross reference it, and see if there’s someone we can play matchmaker with. 

“

I’d love to play matchmaker for you.

”

If you have any other questions, please don’t hesitate to reach out to me. I’d be happy to help you.

How the Fed’s Recent Rate Hike Impacts Our Market

Dear Friends & Clients, On June 14th, the Federal Reserve increased its federal funds interest rate by a quarter of a percent. They are also widely expected to raise rates once or twice more over the course of 2017. While any action by the Fed always garners a lot of attention, I believe these increases will not have any significant impact on the real estate market. Here's why… Fed Rate Increase Means GOOD News For The Housing Market! 1) Mortgage rates stay low & may drop. 2) Economy continues to thrive. 3) Rate increase introduces economic balance and may act as a stimulant. First, mortgage rates have actually trended lower in the wake of the Fed's recent announcement. The 30-year mortgage rate recently hit 3.9%, the lowest level in 2017. In fact, it's a common pattern for the mortgage rate and the Fed rate to move in opposite directions, and the same thing has happened the last two times the Fed raised rates. Second, the economy continues to do well. The Fed decided to increase its rate because unemployment and inflation are low, household spending is picking up, and we've seen steady growth for the past nine years. This is all good news for the real estate market. And, as expected, we continue to see strong demand and a corresponding increase in home prices. Third, while the Fed's rate increase is normally meant to cool off the economy, it might actually stimulate it in this case. Because interest rates were so low for such a long time, experts believe the recent increases might ease pressure on the financial system and encourage lending. Here's a key statistic that supports this view. Since the Fed started raising its rate in December 2016, total mortgages are up 2.5% year over year. In conclusion, while any move by the Fed is likely to lead to a lot of hand wringing, I believe the real estate market will not be affected, and will continue on its own healthy course. Nonetheless, it is clear that right now is a uniquely good moment for everyone in the real estate market. Today’s low mortgage rates are good for homebuyers because they make homes more affordable. If you are considering a new home, check out the many great homes that have recently come on the Denver market: Click Here for all available Denver homes for sale At the same time, if you are thinking of selling, then the current price levels and tight supply mean you will be able to sell quickly and for top dollar. If you want get an idea of what your home is worth in the current market, simply fill out this form: Click Here & Enter your street address to find out what your home is worth And if you have any questions about the Denver Real Estate Market, whether you're buying or selling, give me a call at 303-523-4364. We will provide excellence in customer service and market acumen & strategy. We are Industry Experts in Denver Metro Real Estate and deliver Uncompromised RESULTS!