Despite all the talk from the government about helping homeowners modify or refinance their current mortgages, or making it easier for people to purchase homes, banks and agencies are actually making it more difficult for people to qualify for a mortgage loan.
New rules from Fannie Mae have lowered the acceptable debt-to-income ratios and increased the acceptable credit scores. FHA is proposing some significant changes to their programs as well.
Declining home values as well as new appraisal rules enforced earlier this year have also had a profound affect on current homeowners and potential buyers.
All in all, the lending environment has become much more stringent than it was just six months ago. While mortgage rates have fallen to an all-time historic low, fewer and fewer people can qualify for a loan.
If you have considered buying a home or refinancing, now is the time to investigate the possibility seriously. The lending environment is not getting better…just the opposite.
Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon Financial. Terry can be reached toll free @ (877) 627-9211 x150 or email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org
