Land Park, East Sacramento
and Curtis Park Specialist


As the real estate and related industries change with continuing legislation, we are continually experiencing a tightening up of the lending institutions. Fannie Mae has just issued their latest guidelines which will be implimented the week of December 12th.
A buyer will now be required to have a minimum of a 620 credit score, with few exceptions.
Relating to private mortgage insurance, homeowners whose LTV exceeds 80% of the value of their property will be asked to choose between a higher MIP premium month to month or pay a one time fee at the time of recording.
Ratios exceeding 45% will no longer be approved unless there is are very strong assets and credit shown by the borrower. In no circumstances can expense ratios exceed 50%.
In the final analysis, if a buyer or homeowner is considering a new mortgage, it would be to their advantage to consider executing their loan prior to these new guidelines.

DRE # 01188158

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