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Tough Requirements for Mortgage Loans
from: Deb St. George - HomelessInKingCounty.comIf you live in California or Florida, it’s is definitely harder to qualify for mortgage loans in these areas than other areas that have been less affected by the housing slump. The same “no money down deals” that used to be so popular in these states are now gone. In their place, you will find some that houses in these areas will require at least a 10% down payment, if not more. This may seem hugely unfair for some when they realize the same is not true for other areas of the United States where the housing market has not declined as much. In those areas, you can still get mortgage loans with only 5% down.
Your Credit Score Is More Important
Credit score requirements for mortgage loans have risen. A good score will have to be above 720, which is fairly high. If you don’t meet the new, more stringent credit score requirements, the bank may still offer you a loan – after you pay substantial upfront fees. As if that weren’t enough, you will be offered a higher interest rate to compensate for any deficiencies in your credit reporting. This may make it difficult to qualify for a higher amount after you take into account more money to pay for fees and monthly payments.
What About Previous Data?
If you qualified for a loan before the new rules, you may have some nasty surprises ahead of you. Mortgage loans approved in the past can easily be affected, with the most common problem being how much of a cushion you need to buy the house. If you qualified with a 5% down payment, you might need 10% now. Since the percentages are based on the total cost of the home, the borrower may be facing an addition of many tens of thousands of dollars they need to come up with before closing. This is why many people are finding that even if they qualify, they are caught short.
Check Your Local Market and Lenders
The situation is not the same in every state in the union. Be sure to check your local real estate market and lenders. Lenders are becoming more aware that some areas have resisted the downturn and they are not as concerned about fallout in housing prices there. This can impact the types of offer that are available in your area versus some place like Florida. As long as the market is good in your area, you will probably have more choices in mortgage loans and favorable terms than other more affected areas.
Home Mortgage News
Payment Rates Improve on Texas Home Mortgages - LoanSafe
 e-wisdom.com | Payment Rates Improve on Texas Home Mortgages LoanSafe During the first quarter of 2012, 7.26 percent of Texas homeowners with mortgages were at least one month behind in their payments, the Mortgage Bankers Association said Wednesday. That's an improvement from 7.91 percent in first quarter 2011. Mortgage refinancing applications jump; rates fall: MBA Mortgage group: Loans past due and in foreclosure at 4-year low Fewer Than 1% Of Homes In Foreclosure Nationwide, Reports MBA |
Chief Financial Officer Sentenced in $78 Million Dream Home Mortgage Fraud Scheme - Mortgage Daily
Chief Financial Officer Sentenced in $78 Million Dream Home Mortgage Fraud Scheme Mortgage Daily According to Nelson's plea agreement, beginning in 2005, co-conspirators targeted homeowners and home purchasers to participate in a purported mortgage payment program called the "Dream Homes Program." In exchange for a minimum of $50000 initial ... |
30-year mortgage rate falls to record 3.795 - Chicago Sun-Times
 USA TODAY | 30-year mortgage rate falls to record 3.795 Chicago Sun-Times By MARCY GORDON AP Business Writer May 17, 2012 2:52PM WASHINGTON (AP) — Average US rates for 30-year and 15-year fixed mortgages fell to record lows for the third straight week. The steady decline has made home-buying and refinancing more affordable ... US 30-year mortgage rate falls to record 3.79 pct. Mortgage rates fall to another record low Mortgage Rates in U.S. Fall to Record Lows With 30-Year at 3.79% |
Foreclosures Plunge to Five-Year Low in U.S. Recovery: Mortgages - San Francisco Chronicle
 TIME | Foreclosures Plunge to Five-Year Low in U.S. Recovery: Mortgages San Francisco Chronicle Banks are finding alternatives to home seizures, selling distressed property for less than the amount owed on the mortgage, known as a short sale, or modifying loans for borrowers struggling to keep up payments while an improving economy is helping to ... Report: Fewer US Homes Foreclosed upon in April Foreclosures down, short sales up. Are banks getting smart? |
House insurance gouge puts homes in danger - New York Daily News
 New York Daily News | House insurance gouge puts homes in danger New York Daily News UNEMPLOYED SOCIAL worker Mary Burton had never heard the term “forced place insurance” when the monthly mortgage payments on her modest Staten Island home suddenly shot up from $864 to $1297. Her homeowner's insurance had lapsed, and her lender, ... American Security Insurance Testifies at New York Hearing on Lender-Placed ... State hearings on 'force-placed' home insurance |
Fewer Iowans are behind on their mortgages - DesMoinesRegister.com
Fewer Iowans are behind on their mortgages DesMoinesRegister.com People can refinance into mortgages with lower payments, thanks to rates as low as 3.75 percent for a 30-year fixed mortgage. Someone who owns a home worth $150000 whose interest rate is 6 percent can save $200 per month if he or she refinances into a ... Iowans behind on mortgages catching up |
Principal Reductions Won't Solve US Mortgage Mess - Bloomberg
 PBS | Principal Reductions Won't Solve US Mortgage Mess Bloomberg ... for refusing to allow Fannie Mae and Freddie Mac to pay for large-scale principal reductions for underwater borrowers (those who owe more than their homes are worth) or to facilitate refinancings for those stuck with high interest rate mortgages. What mortgage rate will you really get? Lenders less leery of reducing homeowners' principal Harper: Isakson right on mortgage reform |