Buyers and Sellers! You have 12 months to beat the clock!
Buyers! If the Dodd-Frank Act goes into full effect next April, you will have to put 20% down in order to make a home purchase, unless you finance through FHA, or you can find a lender who will hold your mortgage in-house. Starting next April, you will hear the term "QRM"-Qualified Residential Mortgage. No loan will make the QRM standards unless the buyer puts 20% down and has a minimum credit rating of 740!
Sellers! Imagine if the only buyers who can purchase your home are those with 20% to put down and have perfect credit? Pretty major impact on the number of qualified buyers, wouldn't you agree? If you are sitting on the fence trying to decide if this is the right time to sell, the Dodd-Frank limitations on home mortgages ought to help you off your fence pretty fast!
The Dodd-Frank Act went into effect April 1, 2011. That's right, it's ALREADY in effect - but only partially. The balance of the requirements don't hit the market until next April.
So, if you are a buyer thinking of purchasing your first home the widest range of mortgage options are available to you right now. In 11 months it will be a totally different financial landscape, should all of the requirements go into full effect.
And if you are a seller, the widest pool of buyers is out there for your property right now. In another 11 months you will likely have to work a lot harder to sell your home.
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