YOU MAY HAVE TO SHOW A PAY STUB BEFORE YOU CLOSE ON YOUR NEW HOME

DID YOU KNOW THAT YOU MAY HAVE TO SHOW A PAY STUB BEFORE YOU CLOSE ON YOUR NEW HOME?

Photo: Brian Collette

Buying a new home? You may need to show a pay stub.

Fannie Mae and Freddie Mac recently changed their policies on verification of income, causing lenders to require buyers to produce a paystub before officially buying a new home.

Why is this a big deal?

Here’s why it’s a big deal: Prior to the change in policy at the national level, buyers who were moving to start a new job would be able to show their offer letter from their new employer to their lender as proof of employment and income and could close on their new home before they started their new position. Now closing has to be delayed until the buyer actually receives a paycheck putting their lives and their relocation on hold.

What’s being done about it?

This is what’s being done about it: The Federal Housing Administration (FHA) has not changed their guidelines and allow for an employment start date up to 60 days after closing. They allow a client to put as little as 3.5% down for mortgages up to $345,000 and have a variety of loans available. Ann Arbor Realtors have recently become aware of a program for University of Michigan employees. Bank of America has recently negotiated an exemption from Fannie Mae and Freddie Mac for U of M employees that also allows for an employment start date up to 60 days after closing. They require a minimum of 5% down on mortgages up to $417,000 when buying a new home.

For additional information, please call us at 734-747-7500 or 734-747-7700 weekdays, or 734-660-0105 evenings and weekends. You can also email us at info@prusnyder.com or online at www.prusnyder.com anytime. Choose Prudential Snyder & Company for the best Ann Arbor Realtors!