Getting harder to qualify for mortgage loans…

[HLS]

Fannie Mae is raising its minimum credit score to 620 from 580 and lowering its maximum debt-to-income ratio to 45% to reduce future defaults.

These underwriting changes go into effect the weekend of Dec. 12

“The adjustments reflect careful analysis of a borrower’s ability to repay their mortgage obligation over the life of the loan,”

Fannie claims that borrowers with credit scores below 620 are generally nine times more likely to become seriously delinquent than other borrowers.

In modifying loans, “we have seen too many borrowers where their other consumer debt has jeopardized their success at homeownership,”

[UCGal]

debt to income of 45%… That still seems too high.
But what do I know.

[UCGal]

debt to income of 45%… That still seems too high.
But what do I know.

[UCGal]

debt to income of 45%… That still seems too high.
But what do I know.

[UCGal]

debt to income of 45%… That still seems too high.
But what do I know.

[UCGal]

debt to income of 45%… That still seems too high.
But what do I know.

[creechrr]

[quote=UCGal]debt to income of 45%… That still seems too high.
But what do I know.[/quote]

Yeah, me too!

[creechrr]

[quote=UCGal]debt to income of 45%… That still seems too high.
But what do I know.[/quote]

Yeah, me too!

[creechrr]

[quote=UCGal]debt to income of 45%… That still seems too high.
But what do I know.[/quote]

Yeah, me too!

[creechrr]

[quote=UCGal]debt to income of 45%… That still seems too high.
But what do I know.[/quote]

Yeah, me too!

[creechrr]

[quote=UCGal]debt to income of 45%… That still seems too high.
But what do I know.[/quote]

Yeah, me too!

[HLS]

This is actually an improvment towards reality…

I tell people that they can get approved for more than they should be comfortable borrowing.

I have seen approvals as high as 60%+, but with compensating factors. Many people have some income that underwriters will not count. Many self employed have more income or those with bonus/commission/overtime cannot always be used.

In a society where the govt encourages spending if it took 20% down and 30% debt ratios to qualify for a mortgage, you would see home prices much, much lower, but that just wouldn’t be good for an artificial, phony economy. Don’t expect to see it anytime soon.

[HLS]

This is actually an improvment towards reality…

I tell people that they can get approved for more than they should be comfortable borrowing.

I have seen approvals as high as 60%+, but with compensating factors. Many people have some income that underwriters will not count. Many self employed have more income or those with bonus/commission/overtime cannot always be used.

In a society where the govt encourages spending if it took 20% down and 30% debt ratios to qualify for a mortgage, you would see home prices much, much lower, but that just wouldn’t be good for an artificial, phony economy. Don’t expect to see it anytime soon.

[HLS]

This is actually an improvment towards reality…

I tell people that they can get approved for more than they should be comfortable borrowing.

I have seen approvals as high as 60%+, but with compensating factors. Many people have some income that underwriters will not count. Many self employed have more income or those with bonus/commission/overtime cannot always be used.

In a society where the govt encourages spending if it took 20% down and 30% debt ratios to qualify for a mortgage, you would see home prices much, much lower, but that just wouldn’t be good for an artificial, phony economy. Don’t expect to see it anytime soon.

[HLS]

This is actually an improvment towards reality…

I tell people that they can get approved for more than they should be comfortable borrowing.

I have seen approvals as high as 60%+, but with compensating factors. Many people have some income that underwriters will not count. Many self employed have more income or those with bonus/commission/overtime cannot always be used.

In a society where the govt encourages spending if it took 20% down and 30% debt ratios to qualify for a mortgage, you would see home prices much, much lower, but that just wouldn’t be good for an artificial, phony economy. Don’t expect to see it anytime soon.

[Author]

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