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Freddie & Fannie Loans Compared

FREDDIE/LP Loans
FANNIE/DU Loans
NEW! BORROWER CONTRIBUTION – No minimum on primary >80% with or without non-occupant
BORROWER CONTRIBUTION
– from the borrower’s own funds is not required
– all funds needed to complete the transaction can come from a gift (1 unit)
BLENDED RATIOS – yes, allowed on all borrowers including non-occupant co-borrowers NEW! BLENDED RATIOS – yes, allowed on all borrowers including non-occupant co-borrowers
APPRAISAL OVER 120 DAYS OLD
– Exterior only 2055 allowed to extend beyond 120 days
– Max date is 240 days
APPRAISAL OVER 120 DAYS OLD
– 1004D allowed to extend the validity period
– Max date is 240 days
NO PIW
– Freddie offers an “HVE” on Open Access HARP only
PIW – may be offered in DU findings
CONDO STREAMLINE REVIEW – to 90% CONDO LIMITED REVIEW – to 90%
NEW! FINANCED PROPERTIES
– max 6 when subject is a 2nd home or N/O/O
FINANCED PROPERTIES
– Multiple Property Program for purchase or R/T of 2nd home or investment property for borrowers with 5-10 properties
DISPUTED ACCOUNTS – don’t require confirmation of the accuracy of the disputed tradelines
– already included in LP assessment
DISPUTED ACCOUNTS
– if tradeline dispute and delinquency in last 2 years from credit report date, follow instructions on findings
NEW! LANDLORD EXPERIENCE
– no longer required
LANDLORD EXPERIENCE
 – none required to use rental income
NEW! RENT LOSS INSURANCE
– no longer required
RENT LOSS INSURANCE
– typically is not required when using rental income (unless DU requires, which is rare)
DTI – up to 50% in most cases DTI – up to 45% unless major compensating factors; good reserves
NEW! GIFT LETTERS

– Do not have to identify mortgaged premises

GIFT LETTERS
– do not have to list the property address
NEW! ARMs

– Max 95% on Conforming
– Max 90% Super conforming
ARMs – 90% LTV Max
RESTRUCTURED MORTGAGE – is not eligible for refinance RESTRUCTURED MORTGAGE – can be refinanced (restrictions apply)
SUPER CONF – max purchase is 90% LTV
NEW! HIGH BALANCE – max purchase is 95% LTV

NEW! CONVERSION OF PRIMARY RESIDENCE

– Follow standard rental property requirements

NEW! CONVERSION OF PRIMARY RESIDENCE
 – Follow standard rental property requirements
RETIREMENT FUNDS – 70% of the vested amount less any outstanding loans secured by the account funds RETIREMENT FUNDS – no longer discounted by 30% for market volatility
NEW! 2106 EXPENSE
– Not analyzed if <25% commission
2106 EXPENSE
– Not analyzed if <25% commission
COLLECTIONS – over $5,000 on 2nd home and N/O/O not required to be paid off COLLECTIONS – over $5,000 on 2nd home and N/O/O required to be paid off
SELF-EMPLOYED – 1-year tax returns in most cases SELF-EMPLOYED – 2-year tax returns in most cases

CONTACT ME TODAY FOR MORE INFORMATION!