FHA Rules And Guideline Changes
The financial industry has sure taken a beating the last year or so, and along with the suffering have been some guideline changes. As part of the conditions to receive bailout money the lenders have to tighten a bit as far as qualification guidelines for borrowers.
The changes i am mainly talking about affect the FHA loan programs which have been life savers for people with bad credit. Before March of 2009 a borrower could get an FHA loan no matter what their credit score was. This is not the case anymore. Borrowers must have at least a 620 score to even be considered for an FHA loan these days.
Debt to income ratios and Housing ratios have not changed however which is a good thing. The ratios are that your new house payment can got up to 31% of your income and that your total debt can be as high as 43% of your income. By having these ratios stay the same it will help many people qualify as times are very tight.
The way appraisals are ordered has also been changed. Brokers and lenders used to be able to just order an appraisal from who ever they would like, but this is not the case anymore. The government has determined and sanctioned a third party company that will order the appraisal for you.
The downpayment for FHA loans has changed a little bit as well. 3% used to be all that was required as a downpayment at closing to get an FHA loan. FHA has now changed this amount to 3.5% which is not a huge difference.
Because of the bailout money it is necessary to make some changes and when these changes are made its important to be aware of them.
The changes i am mainly talking about affect the FHA loan programs which have been life savers for people with bad credit. Before March of 2009 a borrower could get an FHA loan no matter what their credit score was. This is not the case anymore. Borrowers must have at least a 620 score to even be considered for an FHA loan these days.
Debt to income ratios and Housing ratios have not changed however which is a good thing. The ratios are that your new house payment can got up to 31% of your income and that your total debt can be as high as 43% of your income. By having these ratios stay the same it will help many people qualify as times are very tight.
The way appraisals are ordered has also been changed. Brokers and lenders used to be able to just order an appraisal from who ever they would like, but this is not the case anymore. The government has determined and sanctioned a third party company that will order the appraisal for you.
The downpayment for FHA loans has changed a little bit as well. 3% used to be all that was required as a downpayment at closing to get an FHA loan. FHA has now changed this amount to 3.5% which is not a huge difference.
Because of the bailout money it is necessary to make some changes and when these changes are made its important to be aware of them.
You like it? Share it!
posted by SolveItQuick at
8:05 AM
0 Comments:
Post a Comment
<< Home