October 18th, 2016 By Martha-Brown in Blogs.
So you still think it’s impossible to get a mortgage because lenders’ standards continue to be super-strict and your profile doesn’t quite fit the standard underwriting molds? You’re right: It can be tough. But it’s no longer impossible as mortgage applications have become easier, thanks to new programs that are becoming available from national and regional lenders for applicants who qualify.
Check out terms like these:
●Minimum down payments of 3 percent or even 1 percent, sometimes without monthly mortgage insurance premium charges.
●Debt-to-income levels that stretch as high as 45 to 50 percent.
●Looser definitions of what qualifies as income.
●Underwriting flexibility that acknowledges that growing numbers of Americans live with extended families and have multiple resident earners who can contribute to household expenses.
Things have loosened up in recent months with new Mortgages Available for Those Who Have Been Frozen Out and that’s good news for buyers with moderate incomes and not a lot of down-payment cash who are stuck paying rising rents and see no clear path to homeownership and the mortgage application has become easier too. It’s all part of a nascent effort by major lenders and mortgage investment giants Fannie Mae and Freddie Mac to reach out to creditworthy borrowers: millennials, immigrant families and first-time buyers of all backgrounds.
The key term here is “creditworthy.” The new low-down-payment loans are not for people with subprime credit histories or FICO scores in the tank. Unlike mortgages during the bubble years of 2004 through 2007, they come with mandatory full documentation underwriting, buyer education counseling programs and the sort of hands-on servicing that was painfully absent a decade ago.
If you have been shy about applying now is the time to step up and apply and take charge of becoming a homeowner today.