Remove Debt-to-income ratio Remove FHA loan Remove Mortgages
article thumbnail

Consumer advocate says policy changes are needed to help FHA buyers compete

Housing Wire

The Consumer Federation of America (CFA) is calling for policy changes that would help alleviate the difficulties for homebuyers using Federal Housing Administration (FHA) loans when competing in tight markets. mortgage market in 2023, up from 14.3% of the U.S. in 2022, according to HUD.

FHA loan 476
article thumbnail

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

Housing Wire

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. Here’s what to expect in the mortgage application process. 3 underrated mortgage products to consider. Your Debt-To-Income Ratio Is High.

Insiders

Sign Up for our Newsletter

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

article thumbnail

The impact of student loans on buying a home

Housing Wire

In fact, according to a recent study, millennials currently struggle with so much debt that 25% worry they won’t qualify for a mortgage. Nearly 1 in 5 millennials (19%) think their credit card debt will be a stumbling block when applying for a mortgage, while 1 in 7 (14%) think the same about their student loans.

article thumbnail

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

Housing Wire

Your credit plays a huge part in your ability to get a mortgage. It influences what loans you’re eligible for, how much you can take out, and how much you’ll pay in interest over the life of your loan. Perfect credit would certainly make getting a loan easier (and cheaper), but it’s not a requirement by any means.

article thumbnail

Attention all first-time homebuyers: Here are some steps to affording a home

Housing Wire

For instance, whether or not you get approved for a mortgage is based on your credit score. First-time homebuyers have mortgage options available that don’t require a high down payment. with an FHA loan. To determine what kind of house you can afford, you need to analyze your debt-to-income ratio (DTI).

article thumbnail

FHA borrowers are getting hammered by rising rates

Housing Wire

Over 80% percent of FHA purchasers are first-time homebuyers, and borrowers of color obtained over 40% of FHA loans last year, according to HUD. The FHA also insured more than twice as many loans to Black and Hispanic borrowers last year as the rest of the mortgage market combined.

FHA loan 370
article thumbnail

Builders rediscover a tool from the 1980s that keeps new home prices from falling

Housing Wire

While sellers of existing homes have struggled with rising rates and softening demand, homebuilders have not only survived, but thrived in this market thanks to the use of mortgage rate buydowns , a tool more widely used by builders since their business is selling homes and clearing inventory.