Fannie & Freddie make it difficult to qualify for ARM and Interest only loans

Fannie Mae and Freddie Mac are making the following changes to interest-only and 3/1 and 5/1 ARM Loan Programs. These changes go into effect immediately. Interest Only Product Changes Interest only transactions are no longer available for Cash-out refinances, Investment properties and 2 to 4 unit properties. Interest only loans are still eligible on following transactions: - unit purchase and rate/term transactions - Primary residences or second homes with a: - Maximum LTV and CLTV of 70% - Minimum credit score of 720 - The borrower must have minimum reserves of 24 months…
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