Some of Fannies Latest Updates

There have been some quiet but really important changes from Fannie Mae recently, and they’re starting to open the door for more buyers than most people realize. Many clients who may have felt they weren’t quite ready before might now be in a position to move forward.

One of the biggest shifts is around credit. Fannie Mae has moved away from a strict minimum credit score requirement for Desktop Underwriter loans. Instead of relying on a hard cutoff, the system now considers the borrower’s overall risk. That means income, assets, and the overall profile carry more weight than the score itself. 

In real terms, this is helping buyers with thinner credit files or those who haven’t used traditional credit much. Think of someone who pays everything with a debit card, or someone who has a lower score but a solid income and savings. Those buyers were often stuck before, and now we’re seeing more of them actually get approved. 

There are still some guardrails to be aware of. Lenders can still have their own overlays, so it’s not a free-for-all, but the key shift is that an approval through DU matters more than just the number on a credit report. From a practical standpoint, this means there are probably people in your pipeline, or even past clients, who assumed they didn’t qualify but might now. 

At the same time, Fannie Mae also made some updates around gift funds and nontraditional credit, which play right into this. There’s now clearer guidance on who can provide gift funds, making family-assisted purchases easier to structure and underwrite. Gift funds are still primarily allowed from individuals with a clear relationship to the borrower. That includes immediate family like parents, siblings, and children, but it can also extend further to things like grandparents, aunts, uncles, and even a fiancé or domestic partner. In some cases, godparents are acceptable if the relationship is well-documented. That alone can be the difference for many first-time buyers trying to save up a down payment.

On the credit side, there’s also better alignment around the use of nontraditional credit. For buyers with limited credit history, consistent rent payments, utility bills, and other consistent payment patterns can help build a qualifying profile. This is especially helpful for younger buyers, self-employed clients, or people who just haven’t relied on credit cards or loans. 

When you put all of this together, it really changes the conversation with clients. Instead of quickly assuming someone needs a higher score or more time, it’s worth digging a little deeper. Someone with a steady income, consistent rent payments, and a little help from family could be closer than they think.

There’s a real opportunity here to reconnect with people who were on the fence or told to wait. A lot of them aren’t as far off as they were even a year ago; they just haven’t heard that the rules have shifted.

If you ever want to sanity check a scenario or run a quick "what if," I'm always happy to take a look. These are the kinds of changes that don't always make headlines but can absolutely turn into more deals when you know how to spot them.

Please let me know if you have any questions or if you or any of your clients, friends, or family members need my guidance. I’m just a call, text, or email away.

📞 Direct Line: 661-291-2222 – Text OK

📞 Cell: 661-714-6258 – Text OK

📞 Office: 661-260-2970 ext. 2222 – Text OK

📧 Email: Mike@AugustaFinancial.com

But wait, there’s more…

Interest Rates

25 days ago, rates were at their best levels in 3 years. Now we have renewed inflation fears and all of those people waiting until rates go lower could have been in a house and refinanced into the 5’s, but they have been stubborn. Reality check! Don’t walk away from savings because you think you will save more later! Take the money when you have a chance!   

Loan Programs

• We do loans on non-warrantable condos!  
• We offer 12-day escrows for pre-approved buyers, including conventional, FHA/Jumbo/Bridge loans.
• We provide loans in all 50 states, so call me with anything you need.
• Government loans (FHA/VA/USDA) are in the 5s.
• Conventional loans up to $832,750 are in the mid to high 5’s.
• High-balance loans from $832,751 to $1,249,125 are also in the high 5 and 6s.
• Jumbo loans above $1,249,125 are in the high 5’s and 6’s.
• ARMS in the 5’s and some in the 6’s
• Bank statement loans are available again with 10% down, with larger down payments in the 6’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 $1,325,000.
• Private Money lenders offer Hard Money Loans with 35% down.
• No-Ratio Loans require a 30% down payment.
• 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. 

**Good News for Condos:**   

Nada today!  

**Bad News for Condos***     

Seco Villas – YUP! Insurance issues, and we just closed one a month or so ago, and all was good!  

CONDO HELP!!!

If you have a listing or a buyer interested in a specific condo and are unsure whether it is warrantable or non-warrantable, please call me, and we can look up Fannie’s list in real-time. We don’t know when something has changed, and it would be impossible to track everything day by day, but we don’t mind looking up a few items each day.  

The full state of California’s naughty list has been added to:

MikeMeena.com! See the link below:

https://mikemeena.com/non-warrantable-condos/

Let me know if you hear anything new about condos or townhouses.

I am available every day if you need anything.    

📞 Direct Line: 661-291-2222 – Text OK

📞 Cell: 661-714-6258 – Text OK

📞 Office: 661-260-2970 ext. 2222 – Text OK

📧 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!

Sincerely,