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What is Expanded Approval in fanniemae? Is it elligible for

Posted on: 06th Sep, 2007 09:56 am
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.
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.
Posted on: 06th Sep, 2007 12:50 pm
There are many benefits of expanded approval for consumers as well as lenders, such as -

Consumers

  1. Loan amounts allowed up to 100 percent of purchase price.

  2. 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

  1. 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.

  2. 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
Posted on: 06th Sep, 2007 02:00 pm
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