From MortgageMonday.com The New Conforming Mortgage Guidelines, Effective September 1, 2009

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Here our New Conforming Mortgage Guidelines, Effective September 1, 2009 Posted: 28 Aug 2009 07:45 AM PDT FROM ATLLOANS.com: As a reminder, Fannie Mae is rolling out new lending guidelines Tuesday, September 1, 2009. Starting next week, being approved for a home loan could be much more difficult. The new rules mark the first major underwriting update since April of this year. The changes are mostly geared at fraud prevention. President of Capital City Mortgage Investments ,Peter Bright shared the updates below: Stock options are no longer eligible for "reserves" Relocating families can't use the "trailing" spouse's projected income "Tip" income must be documented and verified Lenders must call employers to verify employment Lenders must verify tax transcripts against IRS records But there are other changes, too. As examples: Owners and buyers of 2-unit homes are subject to new minimum FICOs with larger downpayment and equity requirements. Only 70% of stock, bond and mutual values may be used as reserves Only 60% of retirement assets may be used as reserves Consider this post to be your advance warning. Not everyone that qualifies for a mortgage on Monday, August 31 will qualify on Tuesday, September 1. Therefore, if you have a pending need for a mortgage -- for either a purchase or a refinance -- it's probably best to talk with a lender as soon as possible. The deadline is based on the date of application -- not the date of closing. Read the complete Fannie Mae announcement online. See ATLLOANS.com for more information on how to apply.

Home Supplies Plummet, Putting Pressure On Home Prices To Rise Posted: 27 Aug 2009 07:45 AM PDT It's no wonder that builder confidence is soaring -- their inventory of homes for sale is depleting at a furious pace. For the 4th straight month, New Home Sales gained, posting the best numbers since last September's meltdown and handily beating economist expectations. The available supply of homes is down to 7.5 months nationwide. It's further evidence that the housing market may have bottomed at some point this past spring. To be sure, the strong housing data is, in part, a reaction to three outside factors: Low mortgage rates An expiring government tax credit Hefty builder incentives But, buyers are buyers and the clearing out of outstanding inventory provides terrific support for home prices. It also gives them reason to rise. Coupled with the blowout Existing Home Sales numbers from July, therefore, this months' New Homes Sale report may be a signal that the Buyers' Market is ending and the Sellers' Market is beginning. If you're planning to buy a home this year or next, it may be time to get a move on. Wait too long, and prices may be up. see ATLLOANS.COM for help today

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