In its recent update, the February Selling Guide, one of the major government-sponsored enterprises (GSEs) has made significant changes that will impact borrowers seeking adjustable-rate mortgages (ARM) and those interested in cash-out refinancing for manufactured homes. These modifications aim to streamline the qualification process and improve access to lending options for potential homeowners.
Key takeaways from the February Selling Guide update include:
1. Qualifying ARM interest rate: The GSE has revised the guidelines for qualifying ARM interest rates, providing more flexibility for borrowers seeking this type of mortgage. This change will likely expand the pool of eligible applicants for ARM loans.
2. Cash-out refi term extension for manufactured homes: Another notable update in the Selling Guide is the extension of the term for cash-out refinancing on manufactured homes, adding 10 years to the existing duration. This adjustment will enable borrowers to access additional funds and extend their repayment timeline, enhancing affordability and financial flexibility.
With these updates, homebuyers and homeowners looking to refinance will have access to expanded mortgage options, ultimately promoting homeownership and supporting economic growth in the housing sector. It is advisable for industry professionals and borrowers alike to familiarize themselves with these new guidelines to leverage the opportunities they present.
You can read this full article at: https://www.housingwire.com/articles/fannie-mae-clarifies-arm-interest-rate-ups-cash-out-refi-term-on-manufactured-homes/(subscription required)
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