
Freddie Mac has made some changes that take a looser look at a few things. These changes help people with student loans as well as people who buy or own investment property.
The changes are as follows:
Freddie Mac guideline changes include the following. It is increasing from four to six the maximum number of financed properties that a mortgage borrower may own or be obligated on when the transaction is a second home or an Investment Property Mortgage. It used to be that once people had four financed properties they could not get a traditional Freddie Mac mortgage. Now that limit has increased to allow two more properties. This is effective with mortgages that settle on or after October 26, 2015.
Freddie Mac is also removing the requirement that a mortgage borrower must have a two-year history of managing Investment properties. They did this to be able use the income from a subject Investment Property or other Investment Properties owned by the mortgage borrower for qualifying purposes. This is effective with mortgages that settle on or after October 26, 2015.
Freddie Mac is revising the minimum monthly payment amount that must be included in the debt ratio calculation when a student loan is deferred or is in forbearance and no monthly payment is verified. It is being lowered from having to count 2% to only having to count 1% of the outstanding balance of the student loan. This is effective with mortgages that settle on or after August 1, 2015.
Restrictions may apply.
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Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.