Fannie Mae to ease lending standards: What's that mean for homebuyers?

The most important specific easing will be an expansion of the maximum debt-to-income ratio (DTI) from 45 percent to 50 percent
  • To get 50 percent DTI you must have very high credit scores and cash reserves after closing.

On July 29, Fannie Mae will activate an update to “Desktop Underwriter,” the software that analyzes borrower applications and grants approval — “DU” in shorthand spoken with reverence or disgust throughout the industry. This update will make it easier for us to approve loans.