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The REI Partner Podcast: Real Estate Investing For The Average Person


Jerred holds down a 9-5 during the week and spends his weekends buying properties in Austin, DFW and Houston.  When he's not buying houses then he spends his time helping others achieve their real estate goals.

You can connect with Jerred Facebook.com/reipartnerpodcast or Jerred Buys Dallas Houses

Jun 8, 2017

Fannie and Freddie made a huge change to mortgage under writing last Friday.

DTI (debt to income) ratio has been increased to 50% from 43%.

The net effect is that it will increase purchasing power by 20%.

This is a huge win for home sellers in the back half of this year.

Read the press release - http://www.mortgagenewsdaily.com/05312017_fannie_mae_lending.asp

 

Negative

- Saddles home buyers with more debt

- You're pulling the worst buyers into an inflated market

- When the market cools then you'll have more buyers on the margin

- These buyers will become forced sellers

- Vicious reversion to the mean will take place

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