Anytime Fannie Mae makes regulatory changes it draws a ton of curiosity. Often times Fannie Mae changes aren’t beneficial for the consumer, realtor, and mortgage bankers. Well, I have good news for you! Most of the the regulatory changes that are now in effect as of August 15th, 2015 include relaxed qualifications and procedures. Essentially making it easier for some to get approved for a loan. Over the next few days we will be going over each line item one by one. First lets look the changes for the Conversion of Principal Residence.

Conversion of Principal Residence:
This change is great for people looking to manage two homes. Whether one be a rental property or simply a second destination, the process just got much easier. The regulations initially imposed during the financial crisis in 2008/09 no longer apply. We knew these regulation would be temporary and have been waiting a long time for them to go away.

Now lenders can simply revert back to the standard rental home and reserve requirements. Here is a link to Fannie Maes direct site in regards to the announcement. https://www.fanniemae.com/content/announcement/sel1507.pdf.

Tomorrow we will be talking about the use of Stocks, bonds, and mutual funds for reserves, down payments, and closing costs!