Fannie Mae’s Stricter Guidelines
I wrote about this before when it was first release but the article was on CNBC so I figured I would refresh everyone’s memory. The change on December 12th is right around the corner and we need to be prepared.
They are tightening the debt to income ratio requirements to 45% and a maximum of 50% with compensating factors. This should have been done over a year ago but better late than never. In my opinion you should not go over 41% and preferably 36%.
Anyway, just as I said before, in the short term it will lead to less people being able to qualify for a home but homeowners and the economy will benefit in the long run. As I always say, not everyone should own a home and there is nothing wrong with renting.