Sometimes in life change is important, it promotes growth and challenges you to get out of your comfort zone. Though the changes may not favor us all, there is the need to accept that change is inevitable in all life aspects. Between late 2016 and early 2017, Fannie Mae and Freddie Mac have embraced some changes in their mortgage operations in a bid to make their services more customers friendly and satisfying.
If you are wondering whether this is a problem, then you may need to acknowledge the fact that this two organization are the heart and engine of almost half of all mortgages in the US thus, whatever happens in the two companies influences a huge part of the mortgage system in the whole of US.
The significant changes to look out for from Fanie Mae this year
• Some appraisal relief for some loans
The good thing with the new era at Fannie Mae is that for some loans this year you will need no appraisal to get approved. What does this mean for you? You can now invest in that property that you have wished for in the year 2016 by getting yourself a loan. The lender will just extend a PIW (Property Inspection Waiver), however for the loan to qualify then it needs to be underwritten by use of the Fanie Mae desktop underwriter system.
The company possesses not only a huge database of companies but also any appraisal information that may prove useful in any transaction. To qualify for r this type of loan then the system will check whether your home has an acceptable home value. You need to pray that the software decides that your home qualifies or else it will knock your opportunity of getting a waiver from the table. The process will just take a few minutes reducing the down time taken to know about the status of your home.
• Higher loan limits
Gone are the days that you were subjected to low limits which in turn sometimes forced some of you to go for a property that did not meet your preference due to limited finances to fund them. A move that was engineered by the Federal Housing Finance Agency upon increasing the loan limits from $ 417000 to the now current limits $424,199
This positive change that will favor potential property buyers has happened after almost a decade. Also, as a homebuyer, you can now access loans without being subjected to exorbitant interest rates. The move will benefit most of the US, however, in some areas cut out as 'high-cost areas’ the limit will hold at 115% of the standard home value
• Property in wetlands fails to qualify
This is a bad for people who are looking to purchase or own property in a wetland. If you are looking to reconstruct a damaged house in the wetlands, then you need to get a loan from some other place a and not Fannie Mae
Though the eligibility guidelines do not particularly address this additional issue limitation applying to environment sensitivity, thus, under no circumstances will Fanie finance or approve such mortgage loans as long as some laws such as the coastal tideland, setbacks or wetlands law apply.
• Homes with solar panels are up for special treatment
Whether owned by the borrower or leased to a third party as long as your home features solar panels then it is bound for the special treatment from Fanie from this year onward. As from March, the guideline will allow underwriters to exclude any solar panels lease payments from the calculation of debt income ratio. The updates, which are in progress, are soon going to give a clear way of how the lease will be like.
Changes to expect for the Mortgage Industry in 2017
• Reduced downtime on time taken to process your loans and reduces coast as a way to make your experience even better.
• The HARP, a program created to allow borrowers to refinance their loans regardless of whether the loan balance exceeds their property value has now been extended up to September 2017 to allow clients to complete it. After which another program the high –loan-to-value refinance program, will replace it. Though you will have to remember, most companies will have to look at your risk profile before approving your loan.