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Fannie Mae Tightens Lending Standards  | International Residential Real Estate Investors Association
Wednesday September 20th 2017

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Fannie Mae Tightens Lending Standards

I’ve attached the text of a blog from the Trump University for the details.  From an investor’s perspective this is a great move for all.  Prospective buyers opportunities are narrowed causing long term demand and growth in the market to increase substantially.

Trump University Blog

Posted by Tina Merritt on 11/30/2009 at 1:50 PM
Posted in Real Estate Investing

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Blog ImageEffective December 12, 2009, Fannie Mae begins implementing new, tightened lending standards.

Among the new guidelines, borrowers who are putting at least 20% down will need to have a minimum credit score of 620 (the current score is 580).  The new cutoff for total debt cannot exceed 45% of borrower’s monthly income.

Why the tightened standards?  On average, loans to borrowers with less than a 620 credit score are approximately nine times more likely to go into default.

In the past, it has not been common practice to give a buyer’s credit score on a lender’s pre-approval letter.  In light of these new guidelines, it may be a good idea to request the score (from a tri-merged credit report) be stated on the letter.

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3 Responses to “Fannie Mae Tightens Lending Standards”

  1. [New blog]: Fannie Mae Tightens Lending Standards http://bit.ly/caTb7q

  2. Thank for this great post, i like what you read.

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