BY LINDA IVANOV for Mortgage Capital Associates | Sept 18 2012, 8:30AM
In a move to help more borrowers qualify for refinancing, Fannie Mae has released new guidelines governing its Refi Plus program. Borrowers and lenders have expanded alternatives for documenting income. Certain liquid financial reserves will now be accepted as verified income. This alternative will apply to loans where the new payment will increase less than 20 percent. The Refi Plus program is available for Fannie Mae to Fannie Mae refinances.
Accepted documentation can come from liquid reserves such as bank accounts, money markets, stock accounts, retirement savings accounts, or certificates of deposit. These assets must be documented with at least one recent statement. The new Selling Guideline also addresses streamlined verification of qualifying rental income for investor owned property.
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