What is Expanded Approval in fanniemae? Is it elligible for

aswain · Joined: 06 Sep 2007 Posts: 3 1.78 Dollars($)

What is Expanded Approval in fanniemae? Is it elligible for delivery to fanniemae?

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.17 Dollars($)

Aswain,

Expanded approval allows borrowers who have less than perfect credit purchase or refinance at competitive rates.

It allows lenders to offer conventional financing by taking a comprehensive view of consumer's creditworthiness, who would otherwise have to rely on non prime loans which have higher rates.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

There are many benefits of expanded approval for consumers as well as lenders, such as -

Consumers

Loan amounts allowed up to 100 percent of purchase price.

Borrower contribution can be as low as $500. This amount can be from his own funds or up to 3% of purchase price from other sources (such as gifts, grants, loans from relatives, or employer-assisted housing) for 1 unit properties.

Lenders

Broader spectrum of recommendations in DU allows them to approve more borrowers, which results in better market penetration & helps them serve market segments which would otherwise be for non prime financing.

It results in streamlined documentation & limited waiver of warranties & representations through DU/DO.

You can read more about Expanded Approval from here - efanniemae.com/sf/mortgageproducts/fixed/ea.jsp

Miller

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