ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Mortgage Rules Update

Updated on March 3, 2010

Mortgage Changes

Mortgage Lending is one of the most detailed professions that I know and when you are reading and writing about one change; another is taking place that you may not know about. A lost of changes took place at the end of 2009 and have been implemented.

Minimum credit score:

Fannie Mae has modified the minimum "representative" credit score requirements for all loans to 620. The "respresentative" score is the middle of three (3) scores from the three major bureaus. This does not mean that you will be approved for a loan if you have a 620 middle score. It means that it is possible if all other parameters of your mortgage financial situation is in balance and the automated underwriting system offer and approval.

Foreclosure Guidelines

If a borrower has a foreclosure completion date of more than 5 years, but within 7 years from the credit report date:

  • The purchase of a principal residence may be permitted with a minimum of 10 percent downpayment and minimum representative credit score of 680
  • The purchase of a second home or investment property WILL NOT be permitted
  • Cash-out refinances WILL NOT be permitted for any occupancy type

Again, this does not mean that one may be approved, all other guidelines apply and must meet the minimum standards also to include but not limited to reserves, income, property.

Deed-in-Lieu of Foreclosure

This type of foreclosure must have been completed more than 4 years from the date of the credit report to be eligible for consideration for a mortgage loan.

This applies also: a principal residence, purchase transaction with a loan to value or combined loan to value greater than 90 (%) percent where a borrower on the loan has a deed-in-lieu of foreclosure action that was complete more than 4 years but within a 7 year period from the credit report date will be ineligible.


Chapter 13 bankruptcy must be discharged greater than 24 months from the date of the credit report and must have the date the bankruptcy was discharged.

A dismissed chapter 13 must be greater than 48 months from the date of the credit report and should be listed with the dates dismissed.

Chapter 7 bankruptcy case and any other non-chapter 13 case, whether filed, discharged or dismissed must be greater than 48 months from the date of the credit report and will not recieve an approval.

Retirement funds for reserves and closing will only be allowed up to 60% of the value of the account if full withdrawal is allowed or 60% of the clients invested amount.

Reserves for second homes have changed to be two months' reserves minimum.

Investment properties must have six months' reserves minimum.

***Not any of these changes are indicative of an approval.  The full approval of any mortgage loan file must be analyzed for credit, income,debt to income ratios, assets and property.  The items listed above are updated minimum requirement but other guidelines and rules may apply depending upon the individual loan file.

Home Loan Changes

Home Loans
Home Loans

Special Note

 Please note that changes have been taking place constantly since the meltdown for all Agencies, FNMA, FHLMC, FHA and VA.  When the announcement is made, it does not always go into affect at that time, sometimes it may be a few months.  When I learn of something new and informative that consumers should know, I will do my best to make sure it is printed here.  On the other hand, if I miss something, please know that I will upon learning of the issue either correct or publish the update.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)