Conventional Vs FHA Guidelines

1. FNMA guidelines on conventional loans and changes according to FHFA
* There are FNMA guidelines Changes for conventional mortgage borrowers.

- Fannie Mae and Freddie Mac are two mortgage giants in the United States who set the mortgage requirements for conventional loans
- Conventional mortgage borrowers must meet Fannie Mae and/or Freddie Mac's minimum mortgage standards to qualify
- Conventional mortgages are also called compliant loans
- This is because they must comply with the Fannie Mac and/or Freddie Mac rental standards
- Conventional credit guidelines change without notice
- Just because a borrower thinks that he or she once qualifies for a conventional loan does not mean that he or she will qualify at a later date
- FHFA, the regulatory agency that monitors Fannie Mae and Freddie Mac, has recently changed the guidelines
- We will discuss these changes on this blog
- Changes were introduced to the waiting period for taking over a traditional loan

2. FHFA increases consistent credit limits

The Federal Housing Financing Agency (FHFA) is a government regulatory agency that regulates Fannie Mae and Freddie Mac. FHFA increased credit limits in line with USD 453,100 due to rising housing prices nationwide. The increase in FHFA's compliant credit limits was the second increase for two years in a row. Rising mortgage rates did not harm the rise and demand for housing prices. There seems to be a serious imbalance of supply and demand. The houses sell like hotcakes and there is not much inventory. Homebuilders are seeing record revenues and growth despite the highest mortgage rates in 10 years.

As mentioned earlier, borrowers who have been exempted from bankruptcy under Chapter 13 may qualify for a conventional loan two years after the date of exemption from bankruptcy under Chapter 13, as long as they meet all of the other mortgage guidelines of Fannie Mae and/or Freddie Mac.

If you have had previous credit problems and are looking for a conventional mortgage lender without overlays, please contact us at GCA Mortgage Group at 262-716-8151 or write to me at gcho@gustancho.com. Write to us for a faster response. My staff and I are available 7 days a week to answer calls from borrowers or send queries by email and answer any questions.

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