What’s a good debt-to-income ratio for a mortgage? What lenders want to see

The Mortgage Report

What's a good debt-to-income ratio for a mortgage? Most lenders want to see 43% or lower. But a higher DTI can be ok, too. Here's what you should know. About Mortgages Mortgage Strategy

Debt-to-income ratio, taxes, and insurance: How your DTI is calculated

The Mortgage Report

DTI, your 'debt-to-income ratio,' includes taxes and insurance as part of your mortgage payment. Here's how to find your DTI with taxes and insurance. About Mortgages Buying a home

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Tired of renting? 6 signs you’re ready to buy your first home

Housing Wire

At least, more complicated than simply paying rent to a landlord every month. Not to mention, expensive. Are you finally ready to put down some roots? Here are six signs that prove you’re ready to buy your first home: More for Real Estate Enthusiasts.

Should You Focus on Saving for a Down Payment or Lowering Your Debt-to-Income Ratio?

RIS Media

When you apply for a mortgage, the lender will look at your income and debt, as well as the amount of money you can put down. When to Prioritize Debt. A lender will limit the percentage of your total income that can go toward debt payments.

How much should my mortgage be compared to my income?

The Mortgage Report

Learn how to find the answer. How much should my mortgage be compared to my income? How much should your mortgage be? It's all about how large of a monthly mortgage payment you can comfortably afford.

How much should my mortgage be compared to my income?

The Mortgage Report

Learn how to find the answer. How much should my mortgage be compared to my income? How much should your mortgage be? It's all about how large of a monthly mortgage payment you can comfortably afford.

Mortgage industry provides commentary on CFPB’s proposed changes to QM loan definition

Housing Wire

Prior to the deadline for public commentary on Tuesday, housing industry trade groups, companies and organizations responded to the Consumer Financial Protection Bureau’s proposed rulemaking for the general qualified mortgage definition and the expiration of the QM patch in January 2021.

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Ballard Spahr’s Andreano: CFPB is open to “other approaches” to QM

Housing Wire

and co-leader of the law firm’s mortgage practice group, to talk about regulatory proposals being considered by the Consumer Financial Protection Bureau. A: Probably among them is the Ability to Repay, Qualified Mortgage proposals.

CFPB proposes a new category of qualified mortgages: Seasoned QM

Housing Wire

The Consumer Financial Protection Bureau is proposing a new category of qualified mortgages called Seasoned QM, which would require loans to meet certain performance requirements over a 36-month seasoning period.

Should I pay off student loans before buying my first home?

Housing Wire

Do I need to pay off my student loans before buying my first home? It’s a common question, but unfortunately, not an easy one to answer. Are you still scratching your head wondering what to do? Here’s what to expect in the mortgage application process.

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Black mortgage applicants far more likely to be rejected

Housing Wire

times as likely to be rejected as the submissions of white home shoppers. That compares to 6% Hispanic applicants, 4 % white and 4% Asian applicants. Of the Black applicants rejected, the vast majority cited a high debt-to-income ratio as a factor, along with a low credit score.

Think these credit problems are stopping you from buying a house? Think again

Housing Wire

Your credit plays a huge part in your ability to get a mortgage. Still, it’s not the end-all, be-all—and many borrowers believe they need picture-perfect credit to buy a home. Myth 2: You can’t buy a house if you have lots of student loan debt. Just having debt isn’t the problem.

Canadian Household Debt To Income Temporarily Plummets Due To Government Support

Better Dwelling

Statistics Canada (Stat Can) data shows the household debt to income ratio dropped in Q2 2020. The ratio had grown to notoriously high levels in the past decade, which were wiped out overnight.

CFPB delays QM compliance date to October 2022

Housing Wire

The Consumer Financial Protection Bureau released a notice of proposed rulemaking on Tuesday to delay the mandatory compliance date of the Qualified Mortgage final rule from July 1, 2021 to October 1, 2022. “At With this newest announcement, that date is now pushed out to October 2022.

4 Reasons You May Have Been Denied Refinance

RIS Media

If you are looking to lower the interest rates on your monthly mortgage payments, refinancing may be the answer. But, according to a recent study by Lending Tree, even though most mortgage refinances were approved at the start of 2021, many were denied. High Debt-to-Income Ratio .

Here’s the salary you need to buy a home in five of the largest U.S. cities

Housing Wire

One being, how much do you need to earn in a year to afford a mortgage in the U.S.? . Since home prices vary state-by-state, the salary you need to qualify for a mortgage in the U.S. and how much a potential homeowner would need to earn to live comfortably.

Buying a home? Boost your FICO score first

Housing Wire

If you’re thinking about buying a home, then boosting your FICO score should be at the top of your to-do list. Thanks to the pandemic, the three main credit bureaus — TransUnion, Equifax and Experian — are all offering free weekly credit reports until April 2021. Avoid new debt.

Is the FHFA about to delay the refi fee?

Housing Wire

According to reporting by the Wall Street Journal on Saturday, the Federal Housing Finance Agency has been communicating with mortgage industry groups about delaying the implementation of a fee which would add a 0.5% The post Is the FHFA about to delay the refi fee?

Why federal CRA requirement on IMBs is not necessary

Housing Wire

Federal Reserve Chairman Jerome Powell recently announced his support to extend the Community Reinvestment Act (CRA) to nonbanks. Therefore, the mortgage questions federal policymakers should be asking are: 1) Why do IMBs have a much better mortgage access to credit record than banks?

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CMHC Finds Toronto and Vancouver Mortgage Debt Ratios Fall, But Not As It Seems

Better Dwelling

Canadian mortgage debt indicators are looking better, but the state-owned housing agency is putting a big asterisk beside them. Canada Mortgage and Housing Corporation (CMHC) data shows the mortgage debt to income ratio made a sharp drop in Q2 2020.

How lenders can help borrowers improve their credit score

Housing Wire

It’s no secret credit scores can hinder a potential borrower’s ability to qualify for the best loan program, which can ultimately lead to poor borrower satisfaction. Consumers have access to credit scores, more than ever,” Hydrew said. To learn more, visit CreditXpert.com.

Understanding the seasonal patterns of mortgage rates

Housing Wire

Much like the changing of the calendar, buying and selling homes follows a seasonality that that those in mortgage and real estate have grown accustomed to. So, what do lenders have to do to be competitive? from December 2020 to March 2021, and by 10.5%

The Do’s and Don’ts after Applying for a Mortgage

Keeping Current Matters

Once you’ve found the right home and applied for a mortgage, there are some key things to keep in mind before you close. They’re all important to know – or simply just good reminders – for the process. Lenders need to source your money, and cash is not easily traceable.

MBA asks CFPB to extend GSE patch

Housing Wire

The Mortgage Bankers Association sent a letter on Monday to the Consumer Financial Protection Bureau asking for a six-month extension to the so-called “GSE patch” that allows Fannie Mae and Freddie Mac home loans to borrowers with high debt levels to be considered Qualified Mortgages.

CFPB delay of QM rule implementation is a terrible move

Housing Wire

As reported yesterday, The Consumer Financial Protection Bureau released a notice of proposed rule-making that would “delay the mandatory compliance date of the general qualified mortgage rule 15 months to Oct. To contact the author of this story: Dave Stevens at dave@davidhstevens.com.

Attention all first-time homebuyers: Here are some steps to affording a home

Housing Wire

In this market where homes are selling like hot potatoes, it might seem like everyone can afford to buy a house, but that’s not true. It takes time, money, energy, planning, money and more money to become a first-time homebuyer. So, what are you supposed to do?

Why does credit matter so much in the home-buying process? Here’s the scoop

Housing Wire

A good credit score increases the likelihood of qualifying for a mortgage because it indicates to the lender that you’re more likely to make timely payments on your loan. There are methods to improve and maintain your credit as you move toward buying a home.

Making Fannie Mae and Freddie Mac a single utility

Housing Wire

The clock has effectively run out for FHFA Director Calabria to release Fannie Mae and Freddie Mac from their 12-year captivity under conservatorship following the great financial crisis. The next stage in their evolution is within reach to ensure that legacy while protecting taxpayers.

MBA seeks clarity on GSE investment property policies

Housing Wire

The MBA said several of the revised PSPA amendments could cause “unnecessary disruptions in the housing finance system,” and asked for a meeting to cover these topics. Reports that the GSEs are requiring some lenders to adjust loan deliveries as early as April.

Buying a Home With a Low Income

RIS Media

Saving enough for a down payment and closing costs may be challenging, but achieving those goals is possible with planning and foresight…even with a low income. If your credit score is too low to qualify for a mortgage with a competitive interest rate, work on boosting your score.

HPC: Delaying final QM Rule “not in public interest”

Housing Wire

The Housing Policy Council sent a letter to the Consumer Financial Protection Bureau on Tuesday expressing its opposition to delaying the implementation of the Final QM Rule and expiration of the 2013 QM Rule, set to take effect on July 1, 2021.

Stepping up the fight against fraud in mortgage lending

Housing Wire

In recent years, we have seen a significant uptick in fraudulent activity ranging from the high tech — intercepted wire transfers and electronic title phishing scams — to low-tech, such as applicants submitting falsified or doctored bank statements. Now we need to adapt again.

The CFPB missed a chance to fix the QM rule

Housing Wire

The Consumer Financial Protection Bureau appears to have lost an opportunity to correct a nagging issue in its definition of a qualified mortgage. At the heart of the issue is a borrower’s ability to repay their mortgage.

Should You Submit an Application to a Different Lender if Your Mortgage Preapproval Was Denied?

RIS Media

This will help you figure out how much you can afford to spend and show a seller that you’re a serious and qualified buyer. Common Reasons for Denial and How to Address Them. If a lender denied your preapproval application due to your credit, check your credit reports.

Forbearance Numbers Are Lower than Expected

Keeping Current Matters

Originally, some housing industry analysts were concerned that the mortgage forbearance program (which allows families to delay payments to a later date) could lead to an increase in foreclosures when forbearances end.

Make Sure You’ll Have Mortgage Reserves Left After Closing

RIS Media

You may think that cleaning out your bank account to make a large down payment on a house would be a smart move, but that’s inaccurate. You may or may not be required to have mortgage reserves. Sources of funds that can be quickly converted to cash are considered liquid reserves.

Are You Ready to Buy a Home?

Realty Biz

Having a low debt to income ratio and a solid credit score allows you to qualify for a mortgage with the best possible interest rate. There are several steps to take before you start shopping for a mortgage. The post Are You Ready to Buy a Home?

Ask Brian: How Much Home Can I Realistically Afford?

Realty Biz

If you have questions on real estate investing, DIY, home buying/selling, or other housing inquiries please email your questions to askbrian@realtybiznews.com. Question from Skylar in Yuma AZ: Good day Brian, I think I’m ready to upgrade to a better home and neighborhood.

Mortgage rates fall again but credit availability gets tighter

Realty Biz

Mortgage rates are at an all-time low, but that’s just too bad for the thousands of potential home buyers who’re missing out on the action due to tighter lending standards. According to Bloomberg News , housing credit availability has reached its lowest level since February 2014.

What Can Be Done With Student Loans to Help Homebuyers?

Realty Biz

A study by American Student Assistance found that 55% of student loan holders said their debt is causing them to put off homeownership. It’s About Your Debt-to-Income Ratio. There are positive steps you can take to improve how lenders view both.

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