Freddie Mac has announced a few changes in their underwriting standards and effective February 2, 2009 they will no longer be buying “Stated Income” mortgages at all. In addition to outlawing stated income loans, the new maximum debt-to-income ratio will be 45% and new minimum credit scores will be increased.
The bottom line of these recent changes?
- Be able to document your income.
- Plan on buying a home that you can afford.
- Pay your bills on time and keep an eye on your personal credit worthiness.
If you do these three things, you will be just fine when applying for a mortgage!