We are getting more flexibility on our loan guidelines!
These changes are good for everyone – especially you!
I’ll cover Conventional loan guideline changes in this post, and government in a later post.
Here are just some of the exciting changes…
1) Seasoning requirements between cash-out transactions are no longer required.
2) The sale of personal assets for funds to close is allowed if the automated system doesn’t say otherwise.
3) For rural areas the house used to have to represent 70% of the overall appraised value of the property. Now: The land-to-value ratio should be common/typical for the area.
4) Purch/refinance transactions on 2nd homes was limited to 80% LTV. Now it’s 90%!
5) When purchasing a short sale, a full appraisal used to be required. Now: When purchasing a short sale, the appraisal requirement is as determined by the automated underwriting system.
That’s it for today!
Brett
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