DEFINITIONS
Why are Fannie Mae Guidlines so important? Whenever a bank, savings and loan or mortgage company sets up a mortgage with a member of the public, they accumulate several mortgages into a large bundle and normally sell the bundle to what is known as a seco
ndary buyer. This enables the secondary buyer to deal in terms of millions of dollars per transaction instead of thousands.
There are in fact, few secondary buyers in the United States. Fannie Mae [Federal National Mortgage Association], Ginnie Mae [Government National Mortgage Association] and Freddie Mac [Federal Home Loan Corporation] are huge and about all there is.
To make things easy for the secondary buyers, they all agreed to use the guidelines of FNMA when purchasing mortgages. Effectively, this means all mortgages that are created by normal lenders have to meet the same criteria for buyer acceptibility, intere
st rates and amounts relative to the value of the property and income of the borrower.
It has long been the standard that an employee gets full credit for his most recent income, but self-employed people are viewed as less stable and typically two years income is averaged in qualifying. The fact that business owners are encouraged to reive
st their profits back into the business, or make other accounting choices that reduce the tax liability is ignored.
We do not ignore reality, especially when it is better than what is shown on a paper trail. Each case is considered individually, and even though we can handle just about any applicant, the best deal we currently have is for successful business owners of
any size.
APPLY HERE and give us a try.
