Will credit be tougher under new Qualified Mortgage (QM) regulations? According to the recent Capitol Hill testimonies of several mortgage, banking and credit union leaders, the new regulations will cause lenders to become overly cautious about approving buyers, even those who are credit-worthy. In the wake of all the changes this year, what can buyers do to improve their situation? In Ken Harney’s recent The Nation’s Housing column, he reviews a few key strategies for today’s buyers:
- Search for flexibility in the debt ratio standard by finding qualified co-borrowers, look for conventional loans sold to Fannie Mae or Freddie Mac, and consider FHA loans.
- Look for down payment assistance options offered through state and local housing finance authorities. DownPaymentResource.com is highlighted as a way for homebuyers to research their options.
Above all, Harney recommends homebuyers check out their options with the help of an experienced loan officer who works with a variety of funding sources. keep reading