Interest only loan
My borrowers bought a beautiful second home here in Tucson at the end of May, and wanted to make the smallest possible monthly payment until their retirement in a few years.
The loan that they chose has an Interest Only feature that reduced their payment by many hundreds of dollars when compared to a fully amortized payment. They paid 20% at closing, and financed 80%.
Fannie Mae continues to tighten credit guidelines
Today, FNMA reduced the maximum LTV/CLTV (loan to value / combined loan to value) to 70% on all interest only loans. Had my clients waited a month, they would have had to come out of pocket another 10%!
Fannie Mae announced that they will no longer accept the following transactions with an interest only feature:
- Cashout
- FLEX mortgages
- My Community loans
- Investment properties
- Duplex to Four Family units
- Credit scores below 720
- Borrowers with less than 24 months reserves
I'm Mike in Tucson, your preferred Tucson Mortgage Lender.
NMLS #223495
SUNSTREET MORTGAGE llc ~ Mortgage Bankers, Not Brokers!
Offices in Scottsdale, Tucson, and Nogales, AZ, and Albuquerque, NM.Reach me any time on my Blackberry (520) 349-9090
John,
Thanks for the reblog. It's getting harder and harder for folks to find credit, and FNMA is crawling back in its shell.
Mike in Tucson
Sure thing! I always enjoy your blog posts. By the way, I am loving eyeonmyloan.com. I've gotten awesome feedback. Thanks again!