If you’ve been thinking of buying a home, you may be happy to know that the government has recently made it easier to qualify for a mortgage.
Recent changes announced by Fannie Mae will be great news for anyone who perhaps previously struggled to qualify for a home mortgage. First of all, the debt-to-income ratio has increased to 50%.
This means that you’re able to be qualified based on 50% of your income going toward your mortgage.
Next, adjustable rate mortgages can be done with 5% down. In the past, a higher percentage was required.
Another key change is that you may now qualify using future primary employment income. What this means is that if you have a pay increase or new job coming up in the near future, that higher income can help you qualify for your purchase, today.
Self-employed borrowers may now also qualify based on one year of tax returns. In the past decade or so, self-employed people had very few options—so this is great news.
Finally, timeshares are no longer considered mortgages. So, if you’re attempting to qualify for a home purchase you will no longer have to worry about a timeshare counting as a current mortgage.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.