Fannie Mae has announced that their guidelines are changing pursuant to requirements for "Qualified Mortgages" as outlined in the Dodd-Frank Act. What does that mean for the average homebuyer? While there are many changes included within these new requirements some of the most important adjustments include the end of Fannie Mae's 40-year amortization, interest only and three percent down payment programs. In addition, the requirements for qualification for adjustable rate mortgages have been tightened up as well. The elimination of the three percent down payment option removes an important alternative for those who have limited resources for a down payment and do not want to pay the increased mortgage insurance required of a Federal Housing Administration (FHA) mortgage. With the rise in rates this year, 5/1 adjustables have become more popular as well. These new requirements are to go into effect on November 16. If you or your real estate client's are thinking about purchasing and will be considering an adjustable or a low down payment loan, you should consider acting now as applications must be fully executed by this November date. Contact us for an evaluation of the best low-down payment alternative before this option is taken off the table.