That is if you are looking at qualifying for a mortgage with Fannie Mae and hoping that your spouse’s “to be” income will be considered. Unfortunately, you may find yourself living miles apart for a while or possibly downsizing to that smaller home. As of June 8th, Fannie Mae has changed their guidelines and will only consider income of those who are actually on someone’s payroll.
So how does this affect the relocation industry? In the traditional relocation where the spouse does not typically work, it will have little impact. But, as you consider the new and younger demographics, it may be substantial. Today, two incomes and a sizable home are not uncommon.
I am hearing two schools of thought on this change. Some are quite concerned, and see this as another relocation obstacle for employees to overcome before they can accept a job opportunity. These companies are wondering if they will have to offer more financial assistance to employees in this predicament. Others however, feel that this is just another adjustment to right the ship of lending to people who may find themselves unable to repay their loan.
Unlike Fannie Mae, Freddie Mac has not gone to this extreme…yet. For now, they are electing to tighten the guidelines. I guess, like everything else, I will take a wait and see attitude before I weigh in on my opinion. Sometimes, these issues feel bigger in theory than in practice.
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