Replies to post #326661 on Fannie Mae-No Politics (FNMA)

[FreezeThese]

Nobody's messing with them... just removing them. They're vehicles of the past

[big-yank]

Maybe some unibrows missed the detail I posted earlier on ARM's and appraisals under HomeReady, so here it is again from Fannie Mae's own website.

http://www.fanniemae.com/singlefamily/homeready?cmpid=homeready1215

JMHO.

[penknee]

The article wasn't very clear, but I went to Fannie's site and read the details. The biggest change is that income from non-borrowers can be counted. The DTI max goes up to 50%, up from 43% DTI with 680 Fico. Definitely not sub prime, but the DTI is quite high. Most renters in high cost areas pay about 50% of their income in rent anyway though. It will be interesting to see how this plays out, will non-borrower income be fudged? Maybe who knows, but it looks like it will help more borrowers qualify that ordinarily wouldn't.