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More homebuyers seek government-backed loans as an affordability lifeline

Housing Wire

The Burns Affordability Index, which measures the ratio of housing costs to income, is now at 42.4%, a figure that’s well above the historic norm of 32.8%. Louis -based Better Rate Mortgage , noted that in his local area, FHA loans are more common for those with higher debt-to-income ratios.

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Cause for concern? FHA, VA delinquencies are rising quickly

Housing Wire

The higher delinquency rates for FHA and VA loans are attributed to borrowers with lower credit scores and higher debt-to-income ratios. Specifically, conventional loans are performing much better than Federal Housing Administration and U.S. Department of Veterans Affairs loans. And likewise, it’s gone up for VA.

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How will first-time buyers fare if sellers can’t offer buyer agent compensation?

Housing Wire

If the home does not appraise, the financing would be a separate personal loan, raising the borrower’s debt-to-income ratio, potentially disqualifying them from the mortgage or making the cost to borrow go up. The arrangement known as cooperative compensation allows sellers to choose to offset the cost of buyers’ agents.

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Mortgage quality control report reveals sharp rise in insurance defects

Housing Wire

Income and employment was still the leading category for defects at 25%. . Loan applicants also struggled as rising premiums made it difficult for them to qualify for mortgages due to higher debt-to-income ratios. In Q3 2024, however, weather-related natural disasters caused providers to raise insurance premiums.

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Buy now, pay later: How do mortgage pros deal with ‘phantom debt’?

Housing Wire

For his client, who had many BNPL loans on her bank statement, paying them off made a significant difference since her debt-to-income ratio was too high. But these sources also told HousingWire that they don’t see an imminent “systemic risk” tied to BNPL debt. “I Meanwhile, BNPL loans are growing rapidly. Mortgage.

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Mortgage industry provides commentary on CFPB’s proposed changes to QM loan definition

Housing Wire

In June, the bureau released two proposals regarding the QM Patch, which allows loans sold to Fannie Mae or Freddie Mac to exceed the 43% debt-to-income ratio the Bureau had established in its Ability to Repay/Qualified Mortgage rule. c) does not prescribe a specific monthly debt-to-income ratio with which creditors must comply.

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Should I pay off student loans before buying my first home?

Housing Wire

With these rates, it’s a bit easier to save a down payment , while still paying down debt. With these rates, it’s a bit easier to save a down payment , while still paying down debt. Meaning, you can take longer to pay down your debt (without accumulating a great deal of interest) than you would with credit card debt.