Fannie Mae updates mortgage underwriting requirements

Fannie Mae recently updated their mortgage Automated Underwriting Software (AUS) with some minor adjustments to their mortgage underwriting requirements.  Here is a snapshot of some of the new features of DU 9.3:

Increased LTV/CLTV Guidelines for High Balance

95% LTV/CLTV for Owner Occupied Purchase
80% High Balance Cash Out (Owner Occupied)
80% NOO Purchase

Introduction of HomeReady Mortgage

HomeReady replaces the MyCommunity Program
Lots of guideline changes – look for a highlight of this program later this week

Non-Occupant Borrower Now Allowed

Fannie Mae now allows Non-Occupying Borrowers

One Year Tax Returns for Self-Employed Borrowers

Fannie Mae now may only require one year tax returns for Self Employed borrowers.