A few Fannie Guidelines Happy Thursday! Sometimes, I want to dive deep into my Fannie Mae Brain and blurt out a few guidelines. It could be the nerd in me, or it could help you get a new deal or save you some time. Fannie Mae Allows Certain Non-Warrantable Condos - But Only with Exceptions Most people assume that if a condo is non-warrantable, it’s entirely ineligible for Fannie Mae financing. However, Fannie Mae has Limited Review and PERS (Project Eligibility Review Service) exceptions that allow financing certain non-warrantable condos. For example, projects with high investor concentration may still qualify if the buyer makes a 25%+ down payment (for primary homes) or 30%+ down payment (for second homes). How This Helps Agents: If your client struggles to finance a condo because it’s deemed non-warrantable, working with the right lender who understands these nuances could still get the deal done - often with conventional financing. Fannie Mae Does Not Allow ANY Gifts on Investment Properties You can get a gift of any size on an Owner-occupied property, but no gifts are allowed on an Investment Property. It’s pretty black and white, but you can always borrow against another property to help with your down payment on an investment property. How This Helps Agents: Knowing what you are dealing with regarding financing can help you put out fires before they start. Fannie Mae Has a Huge Advantage Over FHA for Self-Employed Borrowers FHA requires two years of self-employment history, with no exceptions. However, Fannie Mae allows just one year of self-employment if the borrower has worked in the same field for at least two years before going solo. How This Helps Agents: Many self-employed buyers get turned away because lenders don’t know this guideline. If you have clients who recently became self-employed but have a solid history in their field, conventional loans may work - even if FHA won’t. Deferred Student Loans? Fannie Mae’s Calculations Are Way Better Than FHA’s FHA requires lenders to count 1% of the outstanding balance for student loan payments, which can destroy debt-to-income (DTI) ratios. Fannie Mae, however, uses the actual monthly payment (even if it’s $0 under an income-driven repayment plan). If no payment is available, lenders can use 0.5% of the balance, half of what FHA requires. How This Helps Agents: Conventional financing for buyers with student loans often allows a higher loan amount than FHA, making it easier to qualify. Fannie Mae Allows ‘Future Income’ for New Jobs - Even Before the Start Date Most people assume you need paystubs before qualifying for a home loan. Not with Fannie Mae! If a buyer has a signed offer letter for a job starting within 90 days, they can qualify before they start working - as long as they have enough savings to cover housing expenses until the job begins. How This Helps Agents: This is perfect for relocating professionals or college graduates who have secured jobs but haven’t started yet. You can help them buy a home before they move instead of waiting until after they start working. Final Thoughts: Why This Matters for Real Estate Agents Most lenders only know the surface-level Fannie Mae guidelines, but understanding these deep details means you can help more buyers qualify, close deals others can’t, and ultimately sell more homes. If you’re working with a lender who only gives you “cookie-cutter” answers, you could miss out on deals! Need help with a tricky loan scenario? I specialize in finding financing solutions where others see roadblocks. Let’s get your clients approved and into their new homes - fast. Please let me know if you have any questions or if a client needs my guidance. I’m just a call, text, or email away. 📞 Cell: 661-714-6258 TEXT: 661-714-6258 📞 Office: 661-260-2970 ext. 2222 📞 Direct Line: 661-291-2222 📧 Email: Mike@AugustaFinancial.com 2025 starts now!!! Please let me know if you would like to go over my latest marketing ideas! But wait, there’s more… Interest Rates It was a great day for interest rates yesterday, and we are at the lowest levels since mid-December. Let’s hope we continue in this direction so we can ease the pain of high insurance costs for our buyers. We offer 12-day escrows for pre-approved buyers - Conventional/FHA/Jumbo/Bridge loans. We provide loans in all states, so call me with anything you need. Government Loans (FHA/VA/USDA) are in the 5’s and 6s. Conventional loans up to $806,500 are in the 6s. High Balance Loans from $806,501 to $1,209,750 are also in the 6’s and low 7’s. Jumbo loans above $1,209,750 are in the 6’s and low 7’s. Bank statement loans are available with 10% down again, with larger down payments in the 7’s. Profit and Loss Statement loans require 20% down - no bank statements needed, only a profit and loss statement! 0 down loans are available in the high 6s, with a minimum credit score of 620, up to $1,300,000. Private Money lenders offer Hard Money Loans with 35% down. No Ratio Loans require 30% down. DSCR (Debt Service Coverage Ratio) loans are available with as little as 15% down. Bridge Loans typically have an interest rate of 7.99% with limited fees, helping you get where you need to go! 3/2/1 Buydowns, 2/1 Buydowns, and 1/0 Buydowns are available at great starting rates! Please note that interest rates are subject to change without notice, and the information above reflects LA County Loan Limits. Condos **Good News for Condos:** Nothing new to report. **Bad News for Condos:** Nothing new, but oh man! The full state of California naughty list will be added to my website this week! Over 700 condos that are naughty per Fannie and Freddie. For all other issues involving condos, please check MikeMeena.com. I will post updates here, but all the information on the naughty list is available on my website. Just go there and click about to find our most updated list. Let me know if you hear anything new about condos or townhouses. I am available every day if you need anything. 📞 Cell: 661-714-6258 TEXT: 661-714-6258 📞 Office: 661-260-2970 ext. 2222 📞 Direct Line: 661-291-2222 📧 Email: Mike@AugustaFinancial.com Have a great day, and an even better tomorrow! Please call me when you have a client who needs to borrow! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.
