Trying to acquire an interest only loan is about to get tougher. Fannie Mae is changing the rules to make qualifying for interest only loans a more stringent process. The biggest difference will be the percentage that a home buyer will have to put down on his real estate transaction. Under the new rules a borrower will have to put down 30% of the home’s value to qualify for a Fannie Mae-backed interest-only mortgage.

Fannie Mae does not issue mortgages but buys them from lenders who do. If Fannie Mae doesn’t like what it sees it will not purchase the mortgages. The goal behind the qualification changes is to make sure that borrowers can afford to pay their mortgages. The bursting of the housing bubble has created the need for security, to avoid any repeat performance in the future.

Click here to read an article from CNN Money regarding interest only loans.

 

Contributed by Mario Romero, CRS, CDPE, CLHMS
602-252-4191 office, 602-254-9810 fax
The Romero Team - Melcher Agency
www.TheRomeroTeam.com
www.ShortSaleTeamAz.com
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