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Fannie Mae Underwriting

Fannie Mae underwriting is a process employed by the mortgage corporation to assess the eligibility condition of a borrower to receive their mortgage products. It can also be defined as the detailed credit analysis made by the corporation before granting a loan term to a particular borrower. Underwriting process includes the verification of the employment history, financial statements and credit history of the borrowers. If you are thinking to get some financial aid from Fannie Mae then you are required to have a clear understanding of the underwriting guidelines issued by the corporation.

Fannie Mae Underwriting Guidelines 2009

Fannie Mae's underwriting guidelines for the year 2009 have gone through some adjustments in its method and requirements. One of the most important feature of the recent FNMA underwriting guidelines is the restriction of credit to condominium projects with a delinquency rate of 15 percent. This guideline has tighten the financing options of buyers through the corporation as 15% of condo owners become delinquent on their home ownership association fees.

Fannie Mae Underwriting Requirements

In addition, some other underwriting requirements from the corporation includes:
  • At least 70% of the new condominium units are required to be presold
  • A minimum of 10% of the operating budget should be set for reserves
  • All the projects should contain over 20% residential space
  • Not more than 10% of the units can be owned by a single entity
The above Fannie Mae underwriting criteria will surely add some degree of difficulties for most of the buyers. However, it is widely expected to help in stabilizing the condo market by decreasing the risk of home buyers defaulting on their mortgage loans. These guidelines were introduced by Fannie Mae to protect new buyers from buying units in buildings that have been overwhelmed by unpaid maintenance and association fees.

Effects of Fannie Mae Underwriting Criteria

On the other hand, condo owners and buyers are widely affected by these guidelines from the corporation. These changes in underwriting guidelines will make it difficult for condo owners in the country to sell or refinance your home in the declining market. Moreover, small lending firms that do not have enough staff to fulfill these requirements will find it hard to offer new condo loans. Finally, condo owners will face several difficulties in protecting the value of their homes thereby discouraging new condo ownership.
 
eFannieMae.com
You can get all the essential details on underwriting process of Fannie Mae at eFannieMae.com. Also get government underwriting guides from them.

WebSite:https://www.efanniemae.com/sf/guides/duguides/
 
condo.com
At condo.com is one of the most reliable places to get vital details on Fannie Mae underwriting adjustments. Also get various other information on the housing market of the United States.

WebSite:http://www.condo.com/Learn/CondoNews/Fannie-Mae-Underwriting-Adjustment-Summary
 
Premier Nationwide Lending
Premier Nationwide Lending is one of the leading mortgage information providers operating in all the US states. They provide reliable details on the underwriting guidelines of Fannie Mae.

WebSite:http://www.pnlending.com/esource/FE/FEU1.htm



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