Mortages are becoming a challenge. Here are some new guidelines to check out. Interest rates will probably go lower but you will have to have a high enough credit score to refi or buy a new home.
- The 97% "Flexible Mortgage" is eliminated, replaced by a standard 97% loan subject to Borrower "minimum contributions" are eliminated for 1-unit purchases with at least 3% down. Gifts and grants are permissible sources for a downpayment.
- All revolving debt must be included in debt-to-income ratios, regardless of whether there's "10 Payments Or Less". If there's debt, it must be counted.
- A 5% monthly payment against the balance must be assumed when no minimum monthly payment can be verified via the creditor, or the credit bureaus.
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