Our mobile site is optimized for smaller screens.

TRY IT NO THANKS

Back To Blog

Important Changes to Fannie Mae

In a recent release of the Selling Guide, the Federal Mortgage Association updated a number of important policies ranging from unreimbursed employee business expenses to custodian tracking of Fannie Mae loan numbers.  One very important regulation, which changed in the announcement, will make the buying process much more fluid for potential multi-family investors.

Fannie Mae expanded the use of vested stock, bonds, and mutual funds toward down payments, closing costs, and required reserves for purchases.  This is a change to the previous policy which did not allow these less-liquid forms of assets to be used toward purchase requirements.  Under the current statutes, “one hundred percent of the value of the asset is allowed when determining available reserves.”  Furthermore, if the asset in use is over 20% in excess of the total necessary funding, no documentation of liquidation must be presented; if not meeting the excess requirement, the borrower must either present actual receipt of funds acquired in the sale or documentation of liquidation.

To find more information on these updated policies, and more of the updates, see the Fannie Mae Selling Guide here.

For more information on how to build your real estate investment portfolio, along with the latest listings in the Burlington area, visit LipVT.com today!

    Add Comment

    Do not fill in this field:

    Comments are moderated. Please be patient if your comment does not appear immediately. Thank you.

    Comments

    1. No comments. Be the first to comment.