While each of these bullet points are a topic unto themselves, I though it would be important to touch upon the positive changes we have seen over the past year that have made it easier to be approved for a mortgage. We have seen the reversal of some guidelines originally implemented during the financial crisis. With property values and loan performance at more stable levels, the “over the top” requirements as a result of the crisis are being re-evaluated. FannieMae is leading the way with Freddie closely following and GNMA lagging behind a bit:
Student Loan Debt:
¨ Income Based repayment is OK, even if it doesn’t full amortize the loan (not the case for FHA)
¨ If no payment (Deferred) on the credit report we can use 1% of the balance for the payment
¨ Debts paid by others: Fannie Mae is now allowing Installment debt (Student loans) to be omitted from qualifying if we can prove the past 12 payments were paid by another party, even if they are not obligated to pay.
More good news:
¨ DU now expanding the DTI ratios to 50.00% Closely matching FHA
¨ Use of automation for collateral – (Appraisal/CU) – to assist in the process. This will lead to the appraisal waivers or PIWs
¨ Conforming limits up again $453,100/$679,650
¨ 97% conventional– Great FHA alternative—HomeReady is a great tool as part of the 3% down conventional.
¨ Buy and Bail– no longer a conventional issue (but still an FHA issue)
¨ FNMA HomeStyle Renovation: We are authorized to disburse a one-time payment for materials not yet paid for by the borrower or contractor. (directly to the supplier prior to the start)
Not Conventional, but still on the positive side:
¨ Coming Soon: VA Rehab loans
¨ USDA income limits increase to $99,500 (for Monmouth/Ocean Counties NJ - check your area for local limits)
Have a great week.
Mortgage Loan Originator NMLS# 248937
or my blog: http://activerain.com/blogs/rrauf
Office: (732)908-4868 Cell (732)740-0175
Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 16 Madison Avenue, Building 2 Suite 2D Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood Bayville , Manchester 08757 08733, Manahawkin 08050, Robert Rauf is a Licensed Mortgage Loan Originator in New Jersey.