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Fannie Mae Guidelines |
Fannie Mae Guidelines are introduced by the government sponsored enterprise to educate the investors and borrowers who are looking to deal with them. The corporation has designed new guidelines for short sale, foreclosure, for appraisers, for refinancing, rental income, investment properties, loan modification and for condominiums for the year 2010. Fannie Mae is further committed to providing a range of financing opportunities to investors with good credit history. The enterprise strongly believes that qualified and experienced investors play significant role in the process of improving the housing industry of the country. As a result, Fannie Mae endeavors to assist investors and help them to provide stability, affordability and liquidity to the U.S. housing market.
Fannie Mae Underwriting Guidelines 2010
The corporation has established new underwriting guidelines for mortgage and condominiums in 2010. It is very essential for the investors to have a clear idea of these guidelines before approaching the corporation. Fannie Mae underwriting guidelines describe the types of mortgages that are acceptable to be packaged by professional lenders in the nation and sold to Fannie Mae. The corporation will purchase only those loan packages that are able to meet the specific underwriting standards set by them. On the other hand, the enterprise has updated some policies relating to financing of various mortgages to a borrower. The main objective of the modification is to enable the second homebuyers and investors to own around 5 to 10 properties if they can fulfill the mortgage underwriting requirements mentioned in the 2010 guidelines.
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Fannie Mae Guidelines for Condos
The government sponsored enterprise has further applied new condo guidelines which are believed to have brought several changes in the U.S. condominium market. For instance, Fannie Mae has implemented two types of mortgage fees which affect the condo buyers in the country. A condo fee of 7.5% and an additional fee of 1.7% will have to be paid by the investors. As per the new Fannie Mae condo guidelines, about 70% of the units must be pre-sold for new condo construction and converted condo developments.
In addition, the corporation also requires fidelity insurance for condos with 20 or more units in order to protect the funds of the homeowner association. According to the new guidelines, a single entity will not be able to own over 10% of the total project. A condo-owner insurance policy is also made essential if the master policy of the borrowers do not provide interior unit coverage. Fannie Mae has also implemented new guidelines for short sale, for loan modification, conventional loans and for investment properties. One can find more information on them by logging on to the website of the bank.
Website: http://www.fanniemae.com/governance/principles/index.jhtml?p=Corporate+Governance&s=Corporate+Governance+Guidelines
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