Remove As-is Remove Debt-to-income ratio Remove VA loan
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

Cause for concern? FHA, VA delinquencies are rising quickly

Housing Wire

Specifically, conventional loans are performing much better than Federal Housing Administration and U.S. Department of Veterans Affairs loans. The seriously delinquent rate (loans that are at least 90 days overdue, plus those in foreclosure) for FHA loans is 4.12%, roughly three times higher than the 1.14% rate for conventional loans.

VA loan 378
Insiders

Sign Up for our Newsletter

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

article thumbnail

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

Housing Wire

But for first-time and other cash-strapped buyers—those who are not relying on the proceeds of a home sale, who may be using a 100% financed VA loan, whose agents may be layering forms of assistance to put together enough cash for closing—knowing in advance about the seller’s contribution to their agent costs may be essential.

article thumbnail

The impact of student loans on buying a home

Housing Wire

Most Americans still view homeownership as a key to building wealth, but for many, that piece of the American dream is on hold or out of reach thanks to the heavy burden of student debt. In fact, according to a recent study, millennials currently struggle with so much debt that 25% worry they won’t qualify for a mortgage.

article thumbnail

Think these credit problems are stopping you from buying a house? Think again

Housing Wire

Perfect credit would certainly make getting a loan easier (and cheaper), but it’s not a requirement by any means. FHA loans require just a 500 credit score, as long as you can make a 10% down payment, while VA loans have no credit score requirement whatsoever. Myth 3: You don’t have credit at all.

article thumbnail

Agents fight misconceptions to win deals for military veteran clients

Housing Wire

After completing countless Veterans Administration (VA) mortgage loan transactions over the years, Chris Pascoe, a Marine veteran turned RE/MAX agent, has developed something of a system. VA loans are secured by the VA, and statutorily must be appraised by the VA and not just any appraiser. “I

VA loan 418
article thumbnail

A look at the mortgage hot topics for 2024

Housing Wire

This implies easing inflation next year, and mortgage rates near 6% would help affordability issues caused by two things: The inflation fight has fueled the mortgage rate spike Low inventory and a steady job market have put a floor on home prices The good news is that GSEs remain committed to loan approval guidelines that help in these tough cycles.