May 26, 2019 – The Art of Underwriting

Challenging Residential Lending To Rethink Risk

Fannie Mae increases eligible Condo Projects

Posted on May 26, 2019May 26, 2019 by admin

In June of 2018, Fannie Mae made some changes to their condo guidelines that will increase the number of eligible projects. Noteworthy changes included the following: Investment properties are now eligible for a “Limited Review” with a 75% LTV/CLTV. Two-to-Four Unit condos no longer require a project review, with the Continue Reading

Fannie Mae only requires you to document sufficient funds for closing and reserves. You do not have to paper trail the funds into escrow to ensure they came from the verified accounts (B3-4.2-01: Verification of Deposits and Assets 04/25/2017). Non-Agency investors may not explicitly address this topic or will defer to Fannie Mae. Therefore, if guidelines do not specify otherwise, you should be able to apply this policy to jumbo loans.

Fannie Mae recently provided clarification on their policy for eligible borrowers to address the DACA (Deferred Action for Childhood Arrivals) program. If a borrower has an unexpired DACA status and meets all other requirements, they are eligible for financing. Click Here for the complete update on Non-U.S. Citizens.