- Fannie Mae re-invents their 3% Down financing program, known as HomeReady, that showcases more options that help Borrowers obtain financing for their Personal Residence
- Private Mortgage Insurance on Conventional Loans has become less costly to Borrowers putting less than 20% down payment on their home purchase
- And FHA just announced an upcoming update pertaining to Student Loans and how they view them. A new method for calculating and accounting for "unknown re-payments" Student Loan debt will be put into practice.
Beginning on June 30, 2016 ... FHA will significantly reduce the calculations Lenders must apply for certain Student Loan Payments. For many home buyers that have been kept out of the home buying market as a result of their Student Loan debt, this is very welcome news.
- A 50 percent reduction in the percentage used to calculate monthly student loan obligations, or the use of the actual documented payment when the payment fully amortizes the loan over its term. This may result in increased purchasing ability for some borrowers, while ensuring borrowers have the long-term ability to meet debt obligations.
- The separation of student loan policies from other deferred obligations and installment loans, including future incorporation into the Single Family Housing Policy Handbook 4000.1. This separation provides greater clarity for mortgagees on the unique treatment of student loan payment calculations versus the calculations required for other deferred obligations.
If you thought your Student Loan debt would keep you from being approved to buy a home .... or you thought the amount you'd qualify for would be less because of Student Loan debt ... relief may be arriving on June 30th.
Mortgage Originator - NMLS #216987
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Gene Mundt, Mortgage Originator, 40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking: #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including: The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin.
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