As REALTORS® at Showcase, we believe that homeownership should be available to all Americans, and that American institutions should do all they can to make this happen. Though many younger and lower-income citizens may wonder whether they even qualify to purchase a home in the eyes of mortgage lenders, some exciting changes are coming this month to mortgage qualification criteria. These changes will make homeownership more accessible, and help more potential buyers get approved for mortgages.
Here is what you need to know:
To additionally widen homeownership accessibility, Fannie Mae also increased the loan-to-value ratio maximum for adjustable rate mortgage. In July, the LTV ratio was raised from 90% to 95% for owner-occupied properties under an adjustable rate mortgage. This will help more people secure ARM mortgages, which are preferable for homeowners who know they will move in a few years or pay off their mortgage quickly. It will also make homeownership more financially viable for more people.
We firmly believe that every American should be able to realize the dream of homeownership, and strive to do everything we can to help you become a homeowner. For more information on how Fannie Mae’s recent changes can potentially benefit you, contact a Showcase team member. We’re here to help!
Looking to buy a home? For additional buyer resources, click here.