Feeds:
Posts
Comments

Archive for the ‘HOME FINANCING’ Category

More and more retirees looking to obtain a home loan may find that solid retirement accounts and a sterling credit rating are not enough.

Lenders increasingly are looking for a consistent monthly income in line with their usual debt-to-income standards. When they look at dividends, most lenders want to see a regular annual amount on the tax return paid out over at least the past couple of years.
In terms of part-time employment, borrowers need to prove they are actually working at the moment of application. In some cases, a two-year work history is required.

Social Security income is always counted, of course.
Borrowers, though, need to be informed that current Fannie Mae guidelines permit lenders to increase that income by 25 percent if the beneficiary is not paying taxes on it.

A handful of portfolio lenders are still issuing loans without verifying income.  However, their interest rates are higher and their down payment requirements — which are in the range of 30 to 40 percent.

.

http://www.nytimes.com/2013/05/05/realestate/qualifying-for-a-loan-after-retirement.html?_r=3&adxnnl=1&emc=eta1&adxnnlx=1367926932-w94kghfEFawAW2B9GoN9JA&

.

SOURCE: The New York Times

Read Full Post »

Mortgage giants Fannie Mae and Freddie Mac will begin next year to  purchase only loans that meet new “qualified mortgage” requirements, the Federal Housing Finance Agency announced May 6, 2013.

In January 2013, the Consumer Financial Protection Bureau finalized new rules that would require lenders to verify borrowers’ ability to repay their loans. It capped loan terms and fees and the bureau said that qualified mortgages are borrowers whose debt does not exceed 43 percent of their income.

The requirements are to go into effect January 2014.

“Adoption of these new limitations by Fannie Mae and Freddie Mac is in keeping with [the] FHFA’s goal of gradually contracting their market footprint and protecting borrowers and taxpayers,” the FHFA, which regulates Fannie and Freddie, said in a statement.

The two mortgage giants, which do not issue loans, provide financing to banks and other lenders by purchasing mortgages that are often repackaged as securities that are sold to investors. Fannie and Freddie back about half of home loans today.

Following the 2007-2009 financial crisis, the Dodd-Frank law created the Consumer Financial Protection Bureau, which issued rules that would force lenders to make sure borrowers could pay back loans to avoid the steep losses that banks experienced before. “The law also called for a category of safer, lower-priced loans that lenders could make in exchange for some protection from lawsuits arising from ability-to-repay disputes,” Reuters reports.

The CFPB is creating a temporary qualified mortgage status, which the FHFA said Fannie Mae and Freddie Mac would be permitted to purchase loans that fit under that status to ease the transition.
.
http://www.reuters.com/article/2013/05/06/us-usa-housing-mortgages-idUSBRE9450K920130506

.
SOURCE: REALTOR Magazine, Reuters

Read Full Post »

The Federal Housing Administration plans to raise its mortgage fees in 2013 in order to help avoid a taxpayer bailout, the Obama administration announced on Friday, November 16, 2012. (more…)

Read Full Post »

Mortgage rates held steady for the most part the week ending October 11, 2012, remaining near all-time record lows set the previous week, Freddie Mac reported in its weekly market survey.
(more…)

Read Full Post »

American people favor home ownership over renting.

The U.S. home ownership rate continues to remain around 65.5 percent, the U.S. Census Bureau reported in October 2012. The home ownership rate is nearly the same as it was in the second quarter of 2011 at 65.9 percent.

(more…)

Read Full Post »

30-year Fixed-Rate loans are at historically low interest rates. However, some home buyers and home owners choose adjustable-rate mortgages, or ARMs.


.
Lets look at the risks and rewards of using ARM mortgage: 

REWARDS:
(more…)

Read Full Post »

%d bloggers like this: