Freddie & Fannie Loans Compared
|
FREDDIE/LP Loans
|
FANNIE/DU Loans
|
|---|---|
| NEW! BORROWER CONTRIBUTION – No minimum on primary >80% with or without non-occupant |
BORROWER CONTRIBUTION
– from the borrower’s own funds is not required
– all funds needed to complete the transaction can come from a gift (1 unit)
|
| BLENDED RATIOS – yes, allowed on all borrowers including non-occupant co-borrowers | NEW! BLENDED RATIOS – yes, allowed on all borrowers including non-occupant co-borrowers |
|
APPRAISAL OVER 120 DAYS OLD
– Exterior only 2055 allowed to extend beyond 120 days
– Max date is 240 days
|
APPRAISAL OVER 120 DAYS OLD
– 1004D allowed to extend the validity period
– Max date is 240 days
|
|
NO PIW
– Freddie offers an “HVE” on Open Access HARP only
|
PIW – may be offered in DU findings |
| CONDO STREAMLINE REVIEW – to 90% | CONDO LIMITED REVIEW – to 90% |
|
NEW! FINANCED PROPERTIES
– max 6 when subject is a 2nd home or N/O/O
|
FINANCED PROPERTIES
– Multiple Property Program for purchase or R/T of 2nd home or investment property for borrowers with 5-10 properties
|
|
DISPUTED ACCOUNTS – don’t require confirmation of the accuracy of the disputed tradelines
– already included in LP assessment
|
DISPUTED ACCOUNTS
– if tradeline dispute and delinquency in last 2 years from credit report date, follow instructions on findings
|
|
NEW! LANDLORD EXPERIENCE
– no longer required
|
LANDLORD EXPERIENCE
– none required to use rental income
|
|
NEW! RENT LOSS INSURANCE
– no longer required
|
RENT LOSS INSURANCE
– typically is not required when using rental income (unless DU requires, which is rare)
|
| DTI – up to 50% in most cases | DTI – up to 45% unless major compensating factors; good reserves |
|
NEW! GIFT LETTERS
– Do not have to identify mortgaged premises |
GIFT LETTERS
– do not have to list the property address
|
|
NEW! ARMs
– Max 95% on Conforming
– Max 90% Super conforming
|
ARMs – 90% LTV Max |
| RESTRUCTURED MORTGAGE – is not eligible for refinance | RESTRUCTURED MORTGAGE – can be refinanced (restrictions apply) |
| SUPER CONF – max purchase is 90% LTV |
NEW! HIGH BALANCE – max purchase is 95% LTV
|
|
NEW! CONVERSION OF PRIMARY RESIDENCE
– Follow standard rental property requirements
|
NEW! CONVERSION OF PRIMARY RESIDENCE
– Follow standard rental property requirements
|
| RETIREMENT FUNDS – 70% of the vested amount less any outstanding loans secured by the account funds | RETIREMENT FUNDS – no longer discounted by 30% for market volatility |
|
NEW! 2106 EXPENSE
– Not analyzed if <25% commission
|
2106 EXPENSE
– Not analyzed if <25% commission
|
| COLLECTIONS – over $5,000 on 2nd home and N/O/O not required to be paid off | COLLECTIONS – over $5,000 on 2nd home and N/O/O required to be paid off |
| SELF-EMPLOYED – 1-year tax returns in most cases | SELF-EMPLOYED – 2-year tax returns in most cases |
CONTACT ME TODAY FOR MORE INFORMATION!