Warning: fsockopen(): php_network_getaddresses: getaddrinfo failed: Name or service not known in /home/irreia/public_html/wp-content/plugins/topsy/topsy.php on line 337

Warning: fsockopen(): unable to connect to otter.topsy.com:80 (php_network_getaddresses: getaddrinfo failed: Name or service not known) in /home/irreia/public_html/wp-content/plugins/topsy/topsy.php on line 337
Fannie Mae Tightens Lending Standards  | International Residential Real Estate Investors Association
Monday January 22nd 2018

Join Us On

join the IRREIA linked in group

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

Your comment has been submitted, and will appear once it is approved by the blog moderator.



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.

“The IRREIA - Making residential real estate investing more fun and rewarding
through better education, tools, information, and networking!”


No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Reader Feedback

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.

Leave a Reply

Warning: Illegal string offset 'solo_subscribe' in /home/irreia/public_html/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 304

Subscribe without commenting