Debt has been one of the leading reasons why many potential homebuyers have refrained from applying for a mortgage. Beginning July 29, however, this may not remain such a recurring issue. On this date, Fannie Mae will be changing its debt-to-income (DTI) ratio requirements from 45 to 50 percent. As Fannie Mae is one of the largest sources of mortgage money, this could allow a huge number of new individuals, especially millennials, to receive home-purchase mortgages.
According to the U.S. Department of Housing and Urban Development, 2017 shows great potential for growth in home sales, especially since last year’s sales were the highest they’ve been since 2007. As a result, the real estate market has become increasingly competitive in many parts of the country—but this doesn’t mean mortgage qualification has matched this level of competition. In fact, the technology company, Ellie Mae, has recently revealed that homebuyers with low FICO scores or high debt-to-income ratios could still qualify for that desired mortgage.
According to the Bureau of Labor Statistics’ latest employment summary, 5.9 million Americans work part-time jobs because of economic reasons. As a result, many potential homebuyers shy away from the opportunity to buy a home—but this should not be the case. In fact, mortgage applicants who work one or more part-time jobs can apply that income towards mortgage qualification. Check out how you can get mortgage approved with either one part-time job or a part-time second job today.
This year, nearly two-thirds of loan applications have been approved by mortgage lenders—and with a new “credit card” rule, these numbers are only expected to increase. According to the Federal Reserve, Fannie Mae has completely changed the way mortgage lenders calculate a borrower’s debt by altering the credit reporting industry.
Today, mortgage rates are the lowest they’ve been in years. It’s the ultimate time for home seekers to become homebuyers, and home renters to become homeowners—so why aren’t people rushing to their mortgage advisors to begin the buying process? According to The Washington Post, it’s most likely because of their sub-perfect credit scores. Many people fear they will not qualify for a mortgage with an imperfect credit score, but this is not true!