The FHA, Federal Housing Administration, has begun to put in place stricter standards for letting first-time and low to middle income home buyers.
As pointed out by this usatoday.com article, currently the vast majority of FHA loans are being processed through an automated system with the minority being manually reviewed by lenders. In 2016, the FHA removed their policy that caused applicants with a credit score under 620 and a debt-to-income ratio of 43%. This caused the average credit score of applicants to be much lower by 2019 after those changes.
As a result, new standards will be enacted that will cause FHA loan applicants to undergo a much more intense process of loan application. This is speculated to reduce the amount of these risky loans by 50,000 cases.
To find a real estate agent who understands these issues, and who is a fit for your family, go to LDSAgents.com!
You may hear of reasons that some people like to sell (or buy) their home without an agent. However, this can often cause many problems you may not anticipate when starting the process. Below are only five of the reasons from Keeping Current Matters for why avoiding FSBO (For Sale By Owner) is going to save you a lot of headaches when selling (or buying) a home:
1. Too Many People to Negotiate With
Here is a only a partial list of some of the people you will need to be prepared to negotiate with in the event of FSBO: Read more →
Rising housing costs are putting a major squeeze on Americans.
Nearly 39 million households can’t afford their housing, according to the annual State of the Nation’s Housing Report from Harvard’s Joint Center for Housing Studies.
Experts generally advise budgeting about 30% of monthly income for rent or mortgage costs. But millions of Americans are far exceeding that guideline.
One-third of households in 2015 were ‘cost burdened,’ meaning they spend 30% or more of their incomes to cover housing costs. Of that group, nearly 19 million are paying more than 50% of their income to cover their housing needs.
When so much of your paycheck is going toward keeping a roof over your head, it forces sacrifices in other budget areas, including food, health care and transportation.
LDSAgents.com note—What this article does not say is that many people finance homes using income generated by both partners working. Not only does this put stress on a family, but if one wage earner suddenly cannot work for some reason, finances can get stretched very quickly. We advise our readers to consider the advice of LDS leaders and be watchful about taking on too much debt.
The Bank of Mom and Dad is increasingly open for business – and is increasingly necessary – for younger homebuyers looking to secure a down payment, particularly for middle-income households, presumed first-time homebuyers, Hispanics and Asians.
Not only do parents need to consider the cost of a mission and college these days but there is the potential cost of helping their children get into a home. The use of loans and gifts from family and friends to help purchase a home increased sharply during the recession – from 8 percent of homes bought in 2007 to 21 percent of homes bought in 2009. The share has since declined, to 13 percent in 2014. Hispanics and Asians are more likely to receive down payment assistance from family and friends than blacks and whites. Presumed first-time homebuyers who bought in the years after the recession were roughly twice as likely to have received down payment assistance from friends and family as those who bought prior to the recession. Read more →
Natural disasters happen. Make sure you are prepared.
Having the right insurance policies in place can soften the blows from unexpected events that would otherwise mean financial catastrophe for you and your family. But if you’re like many people, you may not fully understand all the policies you have, let alone whether they’re adequate to meet your needs.
Here are some tips to help you assess your current coverage and decide whether you need to make any changes. Read more →
Student debt can adversely affect getting your first loan.
At LDSAgents.com we frequently encounter young clients who cannot qualify for a home loan due to high student debt.
“As students graduate with more debt than ever, those with student loans are getting worse credit scores and taking out fewer mortgages. At the same time home ownership rates among younger Americans sink to historic lows. College students who took out loans will graduate this year with an average of $33,000 in student debt, Read more →