Fannie Mae just announced a policy change to help the Homeowner who has been waiting to Move Up into a bigger property.
During the Housing melt down, most Federal Lending Guidelines had tightened to prevent Borrowers from buying a new home (at the lower prices) with limited equity in their existing home who could then let their existing home go into Foreclosure.
These standards required a 30% equity position before a borrower could use a lease on their existing property to help offset their mortgage payment in qualifying for a new home purchase.
Now that we have moved into a more stable market, it is refreshing to finally see some relaxation in at least this guideline.
Hopefully it is a glimmer of good things to come.
While documentation can still be cumbersome, there continues to be more avenues for financing opening up.
Low down payments (3-5%) for existing home owners are options and rates are still historically at a great low.
There are also creative solutions available from pledged assets to additional collateral to help bridge the gap from liquidating funds for down payment.
Jumbo loans are also back at great rates.
Contacting a local bank with a large selection of portfolio products will help ensure that you get exposure to a wide variety of financing options.
It’s still a great time to buy!
Apply Now at https://www.regionsmortgage.com/kathyhallmon