With the changes happening to the basic underwriting guidelines of Conventional loan programs so quickly I thought I'd create this blog post to highlight *_some_* of the potentially deal killing details that I've come across in the course of my own business...
- MI for conforming loans on Condo's is on the verge of being extinct (consider FHA as an alternative). 41% max backend DTI for all MI companies. Doesn't matter what DTI Lender will allow.
- Reserve Requirements when purchasing Investment Properties.
Fannie Mae Announcement re: borrowers purchasing multiple investment properties
- When the borrower will own one to four financed properties (including the subject property) the reserve requirements are:
* two months of reserves on the subject