New Rules & Regulations
Posted on | October 1, 2009 | No Comments
Though the average person won’t see all the new mortgage rules and regulations that are still taking place behind the scenes, they will be somewhat affected. It is just not as easy as it used to be to get a mortgage and that’s not going to change. If the trend continues the way it has been, it will become even more difficult to get some mortgages such as jumbo or high LTV (loan to value) loans. Mortgages such as 100% loans to purchase a house are quickly becoming a thing of the past.
There are still a few federal and state programs that can help some people who qualify but the best thing to do is to make sure your credit is above 620, you have at least 3.5% to put down for FHA and at least 5% for a conventional loan and you have a good consistent income coming in. The industry as a whole is going back to very basic lending practices and that means you have to show and prove yourself worthy of getting credit extended to you because banks and investors want to make sure they get their money back. May sound harsh but that is the nature of the business.
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