College Killing Homeownership Dreams

Nickolas Muray, Ladies Home Journal 1931
Nickolas Muray, Ladies Home Journal 1931

College graduates who want to buy a home should fear next Saturday, Dec. 12th.

That's the day Fannie Mae, the quasi-government mortgage finance company, will demand a few frighteningly new requirements. Ready? First, you'll need a credit score above 640, 40 points more than previous requirements. They will also insist that buyers bring a 20 percent down payment, too. And the worst requirement, young graduates:

Fannie Mae will reject loans where the borrower has more than 45 percent of their gross monthly income going toward paying debt, including student loans.

Ouch. Tuition bills just keep kicking you, don't they?