Thursday, September 14, 2017

Fannie Mae (Conventional Loans) is increasing their max debt to income ratio

8/1/17(CT)  Fannie Mae (Conventional Loans) is increasing their max debt to income ratio from 45% to 50%.   This is actually going to be a huge deal.   For a couple making 80K in total income this would allow $333 in extra monthly debt payments.   That actually translates to about 60K in additional purchasing power for that couple.   And the more a person makes in income the more their purchasing power would increase. 
FHA still goes to approx. 55% in debt ratio but this move will definitely enhance the conventional side including the conventional CHFA program.
Below is a link to an article that explains the change.
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Good To Know!

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