There are four new 2014 mortgage changes that are going to affect borrowers. In an effort to tighten up lending standards and prevent another mortgage meltdown, the federal government has created some new mandates that will affect borrowers starting this year. Though these are tougher standards, it’s important to have these guidelines to keep the economy strong and make sure that those who are getting mortgages are actually qualified to do so.
The first of our new 2014 mortgage changes to discuss is that the self employed are going to be scrutinized more closely. The self-employed will need to have a W-2 form when they apply for loans. Even if a self-employed person has a high net worth and perfect credit, they will still have to prove their debt-to-income ratio with federally recognized documentation. The second is that FHA loans are now going to be limited to a maximum of $625,000 which is a reduction from $729,750. If you’re looking for a higher loan than that, you’ll have to apply for a jumbo loan which will require a higher down payment. The third is good for borrowers of all sorts in that points and fees on mortgages cannot be more than 3% of the total loan amount. Fourth, there’s a new mandate, the ability to repay mandate. This regulation is trying to ensure that each borrower is a qualified borrower by using standardized guidelines to determine income, assets and debts.
It’s a whole new playing field when it comes to getting a mortgage. It’s imperative that you use someone who’s able to provide you with good products, competitive rates and most importantly, close the loan. We’ve worked with numerous lenders and can tell you who, in our experience, will be able to get your loan closed.
If you’d like more information on that, please drop us a line at napleslaw@yahoo.com or call us at 239.293.0246.
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