This is so especially those mortgage loan applicants with debt to income ratios as high as 50% DTI. Freddie Mac is also laxer on higher debt to income ratios. Pros And Cons On Fannie Mae Versus Freddie Macįreddie Mac is more lenient with mortgage loan applicants with poor credit history and lower credit scores. But Freddie Mac may approve that file turned down by Fannie Mae. Fannie Mae may turn down a mortgage application with errors on the credit report. Many times when borrowers get denied by Fannie Mae, they may get approved with Freddie Mac. Freddie Mac is not as picky with regards to gift funds as Fannie Mae. Especially from mortgage loan applicants with lower credit scores, higher debt to income ratios, and limited credit tradelines on their credit report. Many times, Fannie Mae has difficulty with accepting borrowers getting a gift. Countless times I have run into situations where I get a denial with Fannie Mae but get approved with Freddie Mac.įannie and Freddie’s automated underwriting systems are very similar but has its differences. Surprisingly I can sometimes get an approve/eligible per LP FINDINGS.
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But for whatever reason cannot get an approve/eligible per FANNIE MAE, If I get a referred/eligible per DU FINDINGS, prior to taking the file through manual underwriting, I submit it to Freddie Mac’s Automated Underwriting System, LOAN PROSPECTOR ( LP ). There are times where I expect an approve/eligible per DU FINDINGS, FANNIE MAE APPROVE/ELIGIBLE PER AUTOMATED UNDERWRITING SYSTEM.