New Mortgage Requirements Go into Effect this Week

October 17, 2012

new mortgage requirements for chicago new home ownersAnyone planning on buying a Chicago new home or condo may want to find out more about the new Fannie Mae mortgage requirements that are going into effect on October 20.

Here’s a rundown on the guidelines.

  • Condo buyers putting less than 10 percent down will have to fill out a special questionnaire about homeowners associations’ financials. Previously, this rule only applied to condo owners putting less than 20 percent down.
  • Self-employed loan seekers will need to provide two years of tax returns instead of just one.
  • The budget of a homeowners association will subject to a full review to ensure that the association can successfully maintain and insure the property.

Fannie Mae states that the reasoning behind these change in guidelines is to make sure that lenders are distributing loans that are sustainable and appropriate. In order to avoid future loan issues, lenders need to focus on providing homeowners realistic loans that will be successful for long periods of time.

For more information, visit the Fannie Mae website.

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