FHA Updates Loan Limits for 2021

The FHA has increased the loan limits for every category in 2021, a boon to prospective homebuyers who may have been negatively impacted by the recession that came with the COVID-19 pandemic. The two primary categories of loan limits are low-cost area and high-cost area, and each category has separate limits for SFRs, duplexes, triplexes,… Continue reading FHA Updates Loan Limits for 2021

CFPB Plans to Replace Debt-To-Income Requirement

The Consumer Financial Protection Bureau (CFPB) is planning to make some changes aimed at widening the accessibility of mortgage loans by allowing lenders more freedom in determining a borrower’s ability to repay. Currently, one of the requirements for a qualified mortgage (QM), the loan type preferred by both lenders and consumers, is a debt-to-income ratio… Continue reading CFPB Plans to Replace Debt-To-Income Requirement

Lenders in uncertain territory, but hopeful

As a result of home sales volume dropping by 30% in Quarter 2 of 2020 from 2019, loan origination has also dropped considerably. The effect was somewhat lessened by low interest rates, which resulted in more refinances. The commercial sector, however, didn’t have that luxury. The Mortgage Bankers Association (MBA) forecasts a 59% decrease from… Continue reading Lenders in uncertain territory, but hopeful

Demystifying mortgage insurance

There are two types of mortgage loan insurance, and it’s also possible to avoid needing insurance. Mortgage insurance premiums (MIP) are the type of insurance required by the Federal Housing Authority (FHA). The other type is private mortgage insurance, or PMI. It’s easier to qualify for FHA loans, but private loans come with some additional… Continue reading Demystifying mortgage insurance

FHFA delays additional refinancing fees

The Federal Housing Finance Agency (FHFA) announced in August that it would be charging an additional refinancing fee to offset losses due to COVID-19. The new fee was expected to come into effect yesterday, September 1st, but at the last minute, the FHFA rescheduled it to December 1st. We’re still in the midst of a… Continue reading FHFA delays additional refinancing fees

Mortgage application rejection on the rise

I’ve previously mentioned that COVID-19 and the current economic downturn have resulted in an increase in mortgage forbearance requests. But what about mortgage applications? Interestingly, even as fewer people are able to pay their mortgages, people are still applying for mortgages, looking to take advantage of the current low interest rates on mortgage loans. And… Continue reading Mortgage application rejection on the rise

Don’t let unemployment shatter your home-buying dreams

Record-high unemployment since the Great Depression is worrying for people looking to buy a home. And it’s true that it’s very difficult to buy a home while unemployed, since lenders are are looking for stable income. Unemployment income is considered temporary income, which lenders aren’t going to look at. Even once you find a job… Continue reading Don’t let unemployment shatter your home-buying dreams

Forbearances down overall, but not for private loans

Data has been showing that forbearances on mortgage loans have been trending downwards in June from the peak on May 22, albeit at a slow rate. However, this doesn’t tell the whole story. The downward trend totalling 158,000 is almost entirely from loans backed by Fannie Mae or Freddie Mac or FHA/VA loans. Loans backed… Continue reading Forbearances down overall, but not for private loans