A Fannie Mae Homestyle Loan is a government sponsored enterprise in the United States of America. The main motive of this loan option is to provide stability, liquidity, and affordability in the mortgage market.
Whether you are out there in order to purchase a new home or want to get the old one refinanced, Fannie Mae does play a crucial role in the housing market whatsoever. The time when you are selecting a mortgage, this is one option that is highly recommended. Since this loan option does not call for originating loans, there is absolutely no need to face any trouble. The loan can be provided from Fannie directly. Both banks and private lenders will look into the procedure and handle it for the borrowers itself.
Continue reading further to find out more about Fannie Mae.
Requirements for Fannie Mae
If you are new to the procedure or want to gain any information regarding the same, speaking to a lender will surely help. Nevertheless, if you are opting for the loan option, it is very important to consider the below mentioned. Only then your application for the loan will be accepted and not declined whatsoever.
The credit score:
The very first factor a lender takes into consideration is the credit score. One has to have a great credit score in order to get their application for Fannie Mae accepted. Until and unless the score is somewhere till 620, there is absolutely no chance that the application will be accepted. You might face rejections till the time your credit score is not up to the mark. Therefore, do not neglect this factor when applying for the loan.
Debt to income ratio:
This is how a lender will compare all the monthly debt payments to the tax. The debt to income ratio should not be more than fifty percent when applying for a Fannie Mae loan option. If the ratio increases more than that, there is no chance that you will acquire Fannie Mae homestyle preferred mortgages. Therefore, take a check at the DTI before filling the application.
Next comes the down payment. For a number of properties, lenders do ask for a higher down payment. If you are applying for a Fannie Mae loan option, know that the payment can be anywhere from three percent to five percent. Therefore, make sure to have sufficient funds in your pocket if you want to experience a smooth procedure.
If you are applying for a Fannie Mae loan option, remember that having funds in your account is essential. If you experience a loss of income or come across any unwanted situation, the lender will take a check at your bank account. This is why it is important for you to have funds available till six months at least.
Want to opt for Fannie Mae Homestyle loan? Consider all the information we have mentioned here and make a move. If you want to know more about the procedure, having a word with the professionals at Preferred Mortgage will help. We are a trusted name offering preferred loan options to people.