Getting your home loan may have just gotten harder thanks to some new rules by Fannie Mae and the FHA.  Make no mistake the rules are very much needed and should keep unqualified buyers out of the housing market until they CAN qualify.

FHA loans may be requiring a higher credit score.  Fannie Mae has raised its minimum credit score from 580 to 620, effective December 12, 2009.  If your score falls below 620, you would have to pony up a 20 percent down payment to qualify for the Fannie Mae guarantee.

Tucson Arizona Homes for Sale goes into some detail about additional Fannie Mae changes.

A third change concerns maximum debt-to-income ratio. Fannie Mae will no longer approve loans with debt ratios exceeding 45 percent except with very strong assets and very high credit scores.

In no case whatsoever may debt-to-income exceed 50 percent.

Today’s interest rates remain low, though we expect them to rise in 2010 (but not more than up to 6 percent).

Today’s 30 year rates with 30 day lock 12/15/09
FHA 4.875
VA 4.875
Conforming 4.875*
USDA 4.875
Jumbo 3.875* with LTV to 90%

*rates assume credit score of 660 with  no lender fee on government loans and 1 pt zero pt program available and loan amount of 150,000>,jumbo loans have limited ltv up to 2,000,000 rate is for 5/1 arm. conforming, loan amounts and credit score restrictions may apply credit income property requirements may vary. Rates and fees vary by lender.