New Help for Borrowers with Student Loans!




Fannie Mae requires that all deferred installment debt, including student loans not yet in repayment, be included in the calculation of the borrower’s debt-to-income ratio. In determining the payment for deferred student loans, Fannie Mae previously required that the lender obtain a copy of the borrower’s payment letter or forbearance agreement or calculate the monthly payment at 2% of the balance of the student loan. Research has shown that actual monthly payments are typically lower than 2%. In addition, many student loan repayment structures now use an income-based approach in calculating changes in the payment due over time. As a result, Fannie Mae is modifying the monthly payment calculation from 2% to just 1% of the outstanding balance.

All in all I think this is a great move by Fannie Mae and will help more borrowers qualify for a mortgage. Or help them qualify for a higher purchase price which is important in a market like the Austin metro where prices are high. 

Call me with questions: 512.524.8310 or send me a note

Episode 17 - The Curb is Online - The Importance of Photography in Real Estate - 1/8/2015

Does good photography really help sell a home faster or for more money? In this episode of The Austin Mortgage Report, we discussed an interesting angle on how great photos can provide an innate advantage when selling your home! Amber Wilson of Sprout Imagery and Jennifer Archambeault of Urban Provision Realtors joined our show to shed some light on the conversation. Here are some interesting facts from our show.

  • 94% of buyers start their search online, the first impression the consumer gets of the house is what they see on the web.
  • 33% of all home buyers are first time home buyers. Median age is 31 years old. (Millenial - visually stimulated).
  • Great photos of your home will entice prospective buyers quicker.
  • Upload images to MLS that walk the buyer through the home as if they were walking through the front door. 
  • Consistency - photos shot from same person will help your marketing stay the same.
  • Make sure to provide enough images to properly market the home.
  • Try to stay away from taking your own photos using your smartphone as it comes off as unprofessional.

Amber Wilson - Sprout Photography 

  • Attended the Washington School of Photography in Bethesda, MD
  • Started her photography career in NYC in 2005
  • Brought her business to Austin 5 years ago, specializing in Real Estate, head-shot and family photography

Jennifer Archambeault - Urban Provision Realty

  • Jennifer is a Owner/broker of Urban Provision Realty, a firm focused on technology and innovation
  • Active at both the local and state levels with ABOR and TAR
  • She is a positive advocate for our industry.

So what's the story with the new 3% Down Mortgage everyone is talking amount?


It's true, a new 3% down option is on the way for conventional buyers. But what's the catch, right? Well let's start with the good stuff:

  • Buyers will be able to put just 3% down!
  • Max amount up to $417,000
  • While it's yet to be determined my guess is credit scores as low as 660 will be accepted.
  • If the borrower makes $75,400 or less (in the 5 counties around Austin), the source of the down payment can be a Gift from a family member!
  • No geographic restrictions...we can close these loans anywhere in Texas.
  • Refinances of existing FannieMae or FreddieMac loans are allows up to the full 97% loan to value.
  • Mortgage Insurance rates will be lower than FHA in most cases and will not be permanent as with most FHA loans. 

Now for some of the restrictions:

  • At least 1 borrower must be a first time home-buyer....meaning they haven't owned a home in the last 3 years.
  • Single Family Homes and Condos only
  • These loans are not available yet. FannieMae releases them on December 13, 2014 however lenders must update their guidelines and origination systems before underwriting these loans. My best guess is that we will begin to offer these in early January. 

I'm very excited to see this new program come back to the market. It will make purchasing a home more affordable to central Texas home buyers especially in light of the 10% year-over-year appreciation that Austin and surrounding cities have experienced over the last few years. Imagine having the opportunity to purchase a $400,000 home with just $12,000 down. Or how about a $200,000 home with just $6,000 down. It's a huge opportunity for both prospective home buyers and the real estate community. 

For more information, or if you'd like to be notified when this program is available to underwrite and close, contact me.

If you'd like to know more about the home buying process, here is a link with next steps