Quality Mortgages

Here are some of the new guidelines:

     1.  Maximum Total Debt to Income for most loans will be 43% of Gross Monthly Income.

     2.  Maximum term will be 30 years, no 40 year loans.

     3.  Loans need to be fully amortizing, no interest only loans, or negative amortizing loans.

     4.  No Pre-payment Penalty Loans.

     5.  Total points and fees not to exceed 3.00% of loan amount.

     6.  Seven to ten year ARMS qualify at the greater of note rate or fully indexed rate.

     7.  Relief Refinance Mortgages: Need a minimum Credit Score of 620, Maximum Total Debt to income ratio of 45% and Income will need to be verified.

     I think it will be harder to qualify for people living in higher priced areas of the country.  It will also make it harder for the self-employed borrower, and the first time home buyer.  Some of the prohibited mortgages, such as interest only loans and 40 year amortized loans.  These programs were set up to help young professionals whose income is set to go up in their field of work.


     This posting is not meant to give an all inclusive look at the new changes.  Just to give a heads up as to some of the changes happening in the new year.

Posted October 24, 2013

Rhonda Sherman, Dependable Mortgage Company, Grand Junction, Colorado

Rhonda Sherman

If any questions, I can be contacted at:

Rhonda Sherman, Owner
License # 100008357  NMLS # 381084
145 Grand Avenue, Suite B
Grand Junction, CO. 81501
Office: (970) 257-1502  Cell: (970) 250-8613
Website: Dependable Mortgage Co. (Apply Online 24/7)

Regulated by the Division of Real Estate
An Equal Housing Lender

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