TIP OF THE DAY- FANNIE CASH OUT REFINANCE UPDATE

TIP OF THE DAY-FANNIE MAE CASH OUT REFINANCE UPDATE STARTING DEC 8 2018

 

Debt-to-Income Ratio

Cash-out refinance transactions underwritten with DU Version 10.3 for borrowers with a debt-to-income ratio exceeding 45% must have at least six months of reserves. If there are not at least six months of reserves, the loan casefile will receive an Ineligible recommendation.

NOTE: Loan casefiles with a debt-to-income ratio exceeding 50% will continue to receive an Ineligible recommendation.

justin brown