by Gaye Jones ~ Anniemac Home Mortgage
First Fannie & Freddie tightened restrictions on 2nd Homes and Investment Loans. Last week Fannie did an update to the automated underwriting system (how we determine if we can qualify a customer for a loan) and have tightened restrictions again. Freddie hasn’t updated yet, but they normally follow suit so we expect them to do the same.. Basically, if your credit score is under 700 you will have a difficult time qualifying for a conventional loan.
In this time of little inventory, multiple offers and many sellers only wanting to accept Conventional but they will have to start looking at FHA & VA to sell their home.
But not all is bad news, FHA & VA continue to have flexible guides for credit scores, debt load and appraisal requirements. FHA no longer requires a Termite Letter/WDO and allows a high debt load. VA is incredibly easy for veterans to secure financing. VA approval is determined by the residual income (what’s left at the end of the month) and not debt load.
Some interesting 2019 facts about Veterans.
Median FICO score of Veterans was 718
7.2% of FL population are Veterans
77% of Veterans have served during wartime
Annual Median Household Income of Veterans is $78,180 vs $57,775 Civilians
Veterans purchased over 9 Million homes totaling over 13 Billion in loan amounts in FL
28% made a down payment
Median Liquid Assets was $17,032
Easier Underwriting with little or no additional overlays
Appraisals have 2 additional options when value is not reached (not Conv & FHA )
It is one of the greatest ways to Honor a Veteran and say “Thank You For Your Service” for a Seller to participate in their Home Ownership Dream, they will be the best neighbors your neighbors will ever have!