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FHFA decides to scrap new debt-to-income ratio fees

Real Estate News

The fees, which were scheduled to go into effect on Aug. 1, were opposed by industry groups including NAR and the Mortgage Bankers Association.

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Buy now, pay later: How do mortgage pros deal with ‘phantom debt’?

Housing Wire

For his client, who had many BNPL loans on her bank statement, paying them off made a significant difference since her debt-to-income ratio was too high. But these sources also told HousingWire that they don’t see an imminent “systemic risk” tied to BNPL debt. “I It’s a little like preventive medicine,” Racamato said.

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More homebuyers seek government-backed loans as an affordability lifeline

Housing Wire

Affordability is a real challenge right now, and with the fact that FHA and VA loans require a lower down payment, and allow for the debt-to-income ratio to go higher than conventional, these types of loans are the bulk of what we are seeing in the market right now. Sean Zalmanoff, founder and chief loan officer at St.

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

Housing Wire

In June, the bureau released two proposals regarding the QM Patch, which allows loans sold to Fannie Mae or Freddie Mac to exceed the 43% debt-to-income ratio the Bureau had established in its Ability to Repay/Qualified Mortgage rule. c) does not prescribe a specific monthly debt-to-income ratio with which creditors must comply.

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5 tips for finding the right mortgage lender for you

Housing Wire

To find a qualified lender, you need a good credit score and a good debt-to-income ratio, which is the percentage of a consumer’s monthly gross income that goes to paying down debt. Before you start searching for a lender, check your credit score and debt-to-income ratio.

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How To Calculate Debt-To-Income Ratio

Bigger Pockets

A sound understanding of how to calculate debt to income ratio is critical for investors. We explain the formula you need to get your DTI.

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

Housing Wire

Your Debt-To-Income Ratio Is High. How much of that money do you use to pay off debt? If a majority of your monthly income goes to debt, your debt-to-income ratio (DTI) is too high and most lenders will only approve those with low DTI’s (around 43%).