Remove As-is Remove Debt-to-income ratio Remove Loans
article thumbnail

More homebuyers seek government-backed loans as an affordability lifeline

Housing Wire

The company’s newest National Housing Market Outlook shows that buyers are gravitating toward government-backed loans in their search for affordability. 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%.

article thumbnail

Southern states had the highest mortgage denial rates in 2023: NAR

Housing Wire

These include insufficient credit or income, changes in credit scores and high debt-to-income ratios. “A loan-to-value ratio that is too high, either because of a limited down payment or an appraisal of the home that resets the value used to calculate this ratio, can also be a factor,” she said.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Homebuyers are taking more risks in an obstacle-filled market

Housing Wire

Findings include 71% of loan officers reporting an increase in buyers who are willing to purchase fixer-uppers, explore unconventional financing or accept high mortgage rates despite long-term financial concerns. Jones, a Colorado-based LO for Lower -backed Universal Lending Home Loans. ADU is a big requirement now.

article thumbnail

Cause for concern? FHA, VA delinquencies are rising quickly

Housing Wire

New data released Thursday by the Mortgage Bankers Association (MBA) revealed that the delinquency rate for mortgages on one- to four-unit residential properties increased to a seasonally adjusted rate of 3.98% of all loans outstanding at the end of 2024. Department of Veterans Affairs loans. And likewise, it’s gone up for VA.

VA loan 417
article thumbnail

Mortgage quality control report reveals sharp rise in insurance defects

Housing Wire

The overall defect rate for mortgages declined across all loan types between the second and third quarters of 2024. Critical defects were found on 1.51% of all loans in the third quarter, a 17% decline from the defect rate of 1.81% in the second quarter. Income and employment was still the leading category for defects at 25%.

article thumbnail

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

Housing Wire

Do I need to pay off my student loans before buying my first home? What it really comes down to is whether or not you feel comfortable paying a mortgage (and all the other fun expenses that come with having a home), while also paying off student loans. For example, a conventional loan lets you put as little as 3% down.

article thumbnail

First-time homebuyers becoming first-time home sellers

Housing Wire

Whatever that looks like, they’re kind of maxing out with the debt-to-income ratio. They’re getting a loan. It could be something like having a special loan with a lower rate for those buyers. They’re not leaving a lot of room for repairs or just having savings and things like that.