Fannie Mae announced that they will tighten their guidelines starting in December 2018. They are stating that people who spend too much on their housing expense have a higher default rate. Although it has not yet been finalized what the change will be, it is expected that they will not approve higher debt ratios as they do now. With housing prices up, rates on the rise and debt ratios tightening, it will be harder for people to qualify.
What can we do?
Anyone who is on the fence has about a month to find a home before the new stricter guidelines come into effect. Get your preapprovals now. Buy now!