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More homebuyers seek government-backed loans as an affordability lifeline

Housing Wire

Affordability is a real challenge right now, and with the fact that FHA and VA loans require a lower down payment, and allow for the debt-to-income ratio to go higher than conventional, these types of loans are the bulk of what we are seeing in the market right now. Sean Zalmanoff, founder and chief loan officer at St.

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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.

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Homebuyers are taking more risks in an obstacle-filled market

Housing Wire

We write so many mortgages at maximum debt-to-income ratios, then taxes and insurance go up, and people struggle to afford their home very quickly, said Matt Hefner, an LO with Fairway Independent Mortgage Corp. Meanwhile, climate-related risks are also impacting home values.

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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. The rate for FHA loans increased by 57 bps to 11.03%, and the rate for VA loans rose by 12 bps to 4.70%. They tend to be more vulnerable to economic stressors like job losses or inflation.

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Mortgage quality control report reveals sharp rise in insurance defects

Housing Wire

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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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. . “Somebody who has a budget of $3,500 a month, they’re kind of seeing what is available in that range, and they pick the best house around that monthly payment, right? They’re getting a loan.

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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. Rolling the fees into the mortgage” leaves the buyer with a higher interest rate.