How To Calculate Debt-To-Income Ratio
Bigger Pockets
MAY 29, 2023
A sound understanding of how to calculate debt to income ratio is critical for investors. We explain the formula you need to get your DTI.
Buy now, pay later: How do mortgage pros deal with ‘phantom debt’?
Housing Wire
MAY 29, 2024
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. This type of short-term financing became popular during the COVID-19 pandemic when people — mainly young and underserved consumers — were stuck at home and shopping online.
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Consumer advocate says policy changes are needed to help FHA buyers compete
Housing Wire
SEPTEMBER 5, 2024
The report calls on more states and cities to pass “source of income” or “source of financing” anti-discrimination statutes and enforce them to protect homebuyers. These anti-discrimination statutes make it illegal to refuse to rent, sell or lease housing because of a lawful source of income being provided. of the U.S.
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Unison unveils ‘hybrid’ home equity sharing loan
Housing Wire
SEPTEMBER 17, 2024
Home equity solutions provider Unison launched a new product on Tuesday that combines the features of traditional mortgage financing and emerging home equity investment (HEI) options. Eligible borrowers must have a FICO score of 680 or higher and a debt-to-income ratio of 40% or less.
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California leads all states for highest bankruptcy risk to seniors
Housing Wire
MAY 16, 2024
Across all states, California poses the highest risk of bankruptcy for Americans ages 65 and older, according to a study released by personal finance website Moneywise. The study analyzed 11 factors to determine which states put elderly U.S. citizens at the greatest risk of bankruptcy.
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Divvy launches new product aimed at homeownership readiness
Housing Wire
MARCH 13, 2024
They wanted to understand their credit, they wanted to understand their debt-to-income ratio, they wanted to understand how to build their savings, and they wanted education.” With these customer needs in mind, Hefets and her team set out to create DivvyUp. It is very aligned with our mission,” Hefets said. “It
The impact of student loans on buying a home
Housing Wire
MAY 24, 2024
Student loan debt may affect your home-buying goals in a few key ways. Debt-to-income ratio (DTI) Lenders calculate your DTI ratio by dividing your total monthly debt payments (including student loans) by your gross monthly income to assess your ability to handle additional debt, like a mortgage.
No undue risk! Freddie Mac’s Sonu Mittal on new buyback remedy, appraisal waiver extensions
Housing Wire
OCTOBER 30, 2024
But public filings analyzed by Inside Mortgage Finance revealed that seller repurchases rose to $430 million in the second quarter of 2024 — a 29% increase from the previous quarter. What this enhancement does is specific to three areas: debt-to-income ratio, reserves and loan amount.
How will first-time buyers fare if sellers can’t offer buyer agent compensation?
Housing Wire
NOVEMBER 4, 2024
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.
NewRez now offers Freddie Mac’s revamped downpayment assistance program
Housing Wire
MAY 8, 2023
Louis, Missouri-Illinois Program borrowers also need to meet the lender’s eligibility requirements, which typically include a minimum credit score of 620 and a maximum debt-to-income ratio of 50%. For those who make between 50.01% and 80% of AMI, there is up to $1,250 worth of assistance available.
5 tips for finding the right mortgage lender for you
Housing Wire
JANUARY 20, 2021
To find a qualified lender, you need a good credit score and a good debt-to-income ratio, which is the percentage of a consumer’s monthly gross income that goes to paying down debt. Before you start searching for a lender, check your credit score and debt-to-income ratio.
Should I pay off student loans before buying my first home?
Housing Wire
MARCH 25, 2021
Contrary to popular belief, not every millennial is struggling with their finances. Having student debt shouldn’t stop you from buying, just as long as your wallet is in good condition. Your Debt-To-Income Ratio Is High. How much of that money do you use to pay off debt? What if your dishwasher breaks?
HousingWire Annual: FHFA’s Sandra Thompson addresses loan buyback issue
Housing Wire
OCTOBER 11, 2023
The Federal Housing Finance Agency (FHFA) Director Sandra Thompson said Wednesday that the agency is working to provide more clarity on its framework and use alternatives amid a spike in Fannie Mae and Freddie Mac ‘s loan buybacks. There could be some way or alternatives to repurchase that need to be considered,” Thompson said.
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Hard Money Lenders Orange County: Fast Financing Solutions
HomeLight
JUNE 30, 2024
Hard money loans offer a flexible financing option outside of traditional banks, perfect for those who need quick cash, have limited savings, or face credit issues. If you’re looking for a quick and flexible financing option for your real estate ventures in Orange County, a hard money loan might be the solution.
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Mortgage costs, lender denials jumped in 2022: CFPB
Housing Wire
SEPTEMBER 27, 2023
Higher costs and rates meant customers taking out mortgages in 2022 devoted a higher share of their income towards paying home loans. The average debt-to-income ratio for Hispanic White and Black borrowers reached over 40% in 2022, about 39% among Asian applicants and 37% for non-Hispanic whites. in 2022, up from 8.3%
Highly leveraged loans on the GSEs’ books are a real fiscal danger, Calabria argues
Housing Wire
SEPTEMBER 17, 2024
former Federal Housing Financing Agency (FHFA) director Mark Calabria made the argument that a larger credit box has caused the government-sponsored enterprises (GSEs) to take on far more risk than they should be. . At policy panels held by the Community Home Lenders of America (CHLA) on Monday in Washington, D.C.,
Tired of renting? 6 signs you’re ready to buy your first home
Housing Wire
APRIL 7, 2021
Your Income Is Stable. How are your finances? A stable income means you’re more likely to be approved for a loan , than someone with an unstable income. Not to mention, if your finances are solid, you’ll be able to afford all those extra housing expenses. Most lenders prefer borrowers with a DTI lower than 36%.
Freedom Mortgage founder addresses ’extraordinary’ credit profiles, profitability and products
Housing Wire
APRIL 24, 2024
To prove his point, Middleman said that he is seeing average loan-to-value ratios of 50%, average debt-to-income ratios in the lower 40% range, and credit scores in the low 700s, which is an ”extraordinary” credit profile, he said. compared to the previous year.
Fannie Mae hauls in $4.7B net income for Q2 2022
Housing Wire
JULY 29, 2022
Treasury , which holds a majority stake in Fannie Mae, and the Federal Housing Finance Agency , its conservator, allowed the company to retain earnings starting in 2019. That mix of refinances and purchase acquisitions also impacted the debt -to-income ratio of loans Fannie Mae bought, and the underlying credit score.
Opinion: A rebuttal to Steve Broebeck and the CFA’s anticompetitive price fixing position
Housing Wire
AUGUST 22, 2024
Let’s address these concerns: First, Steve’s argument presupposes buyers, especially those at the lower end of the income spectrum, can easily finance agent commissions through their mortgage. The reality is that financing commissions are unfeasible. This assumption is fundamentally flawed.
The mortgage industry is nervous about LLPA fee changes
Housing Wire
JANUARY 20, 2023
The Federal Housing Finance Agency this week made a series of significant changes to loan level pricing adjustment (LLPA) fees charged by Fannie Mae and Freddie Mac on conventional/conforming mortgages. The changes are effective starting May 1, 2023.
Hard Money Lenders Long Island: Alternative Financing Options
HomeLight
SEPTEMBER 17, 2024
Whether you’re flipping a beach bungalow in the Hamptons or investing in a rental near Huntington, hard money lenders on Long Island offer quick, flexible financing options that traditional lenders might not provide. Their clients often include house flippers and those investing in rental properties , needing fast, flexible financing.
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Positive signs abound for 2024 housing market: ICE
Housing Wire
FEBRUARY 5, 2024
Under such a scenario, more than half would be homeowners who financed in 2023, with less than 10% coming from 2022-vintage loans. of the median household income, the average payment is down from a 38-year high of more than 38% in October. million to 3.8 Nearly 60% of that growth would come from loans originated in 2023, ICE projected.
Housing market hinges on mortgage rates and supply, not commission structures
Housing Wire
AUGUST 8, 2024
“Incomes, wealth, life events, mortgage rates all play a role in determining housing demand, while on the supply side we have land costs, government regulations in terms of zoning rules, geographic constraints to building and builder financing costs,” Divounguy added. “So,
First-time homebuyers made up a record share of agency purchase loans in 2023
Housing Wire
MARCH 3, 2024
The market in which these folks purchased their first home was one of record house prices, ballooning down payments , rising rates and elevated debt-to-income ratios (DTIs).
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FHFA delays implementation of LLPA DTI fees
Housing Wire
MARCH 15, 2023
Following a chorus of complaints from the mortgage industry, the Federal Housing Finance Agency (FHFA) on Wednesday announced that it would delay the implementation of a new and controversial upfront fee on Fannie Mae and Freddie Mac borrowers with higher debt-to-income ratios.
FHFA Director Thompson speaks out to correct LLPA misinformation
Housing Wire
APRIL 26, 2023
Federal Housing Finance Agency (FHFA) Director Sandra Thompson issued a statement Tuesday to correct the misinformation that’s spread about the agency’s loan-level pricing adjustments to conventional mortgages. No change is more controversial than the LLPA tied to a borrower’s debt-to-income ratio.
Is the FHFA about to delay the refi fee?
Housing Wire
AUGUST 22, 2020
According to reporting by the Wall Street Journal on Saturday, the Federal Housing Finance Agency has been communicating with mortgage industry groups about delaying the implementation of a fee which would add a 0.5% surcharge to refinance mortgages sold to Fannie Mae and Freddie Mac starting Sept.
Builders rediscover a tool from the 1980s that keeps new home prices from falling
Housing Wire
DECEMBER 12, 2023
In this case, the total debt-to-income ratio (DTI) would be 51% and would exceed the Fannie Mae or Freddie Mac DTI limit of 50%. This suggests that DR Horton was offering the greatest buydowns to the most income-constrained borrowers in order to qualify more of them for financing. permanent rate buydown to 6%.
What is a Non-Conforming Loan When Buying a Home?
HomeLight
MARCH 12, 2024
Most Americans financing a house will typically use a conforming loan, which means it “conforms” to guidelines that allow the loans to be sold to Fannie Mae or Freddie Mac, two of the largest mortgage buyers in the country. A non-conforming mortgage loan stands apart from the crowd of standard financing options.
Regulator rescinds new Fannie, Freddie fee for riskier borrowers
Inman
MAY 10, 2023
Lending industry groups like the Mortgage Bankers Association called a fee based on borrower's debt-to-income ratio "unworkable."
Should You Buy a New Car if You’re Also Thinking About Buying a New Home? You May Want to Wait
Lighter Side of Real Estate
SEPTEMBER 8, 2021
Changing your debt-to-income ratio. Debt-to-income ratio is one of the most important factors lenders use to determine how much house you can afford—and, as such, what mortgage amount you’re approved for. Acting as a “red flag” to your lender. The Takeaway: So, what does this mean for you?
Understanding the seasonal patterns of mortgage rates
Housing Wire
JANUARY 25, 2021
Surprisingly, a borrower who lowers their debt to income ratio doesn’t move the needle much on rates. That said, recent changes implemented by the Consumer Finance Protection Bureau have removed DTI requirements from qualified mortgages.
A housing boom doesn’t portend a bust
Housing Wire
MAY 4, 2022
A housing bubble can generally be defined as an unsustainable period of house price growth generated by artificial demand, as was the case in the mid-2000s when demand surged because of wider access to mortgage financing. The mortgage debt-to-income ratio is near a four-decade low and homeowner equity is at a historic high.
Attention all first-time homebuyers: Here are some steps to affording a home
Housing Wire
JUNE 4, 2021
Your score will determine your financing options for buying a house. To determine what kind of house you can afford, you need to analyze your debt-to-income ratio (DTI). Your DTI shows how much money you put towards debt each month, and it’s relatively simple to calculate. . Step 1: Know Your Credit Score.
Mortgages with Low Credit Scores - Your Guide to Affordable Home Financing
Realty Biz
SEPTEMBER 30, 2023
Let's delve deeper into these topics to guide you towards an affordable home financing solution. In addition to credit scores, lenders also consider factors such as your income, employment history, savings, current debts, and the value of the home you intend to purchase. Reduce your existing debt.
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Buying a House While in Chapter 13 Bankruptcy
Realty Biz
APRIL 5, 2022
Manual underwriting is similar to automated underwriting system approval except there is lower debt to income ratio cap. Higher debt to income ratio borrowers need up to two compensating factors. Lenders offer 100% financing on VA loans. ? Debt to Income Ratio on Manual Underwriting.
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Get Ready Financially to Buy a Home With These Tips
Realty Biz
SEPTEMBER 5, 2023
One crucial aspect of this process is ensuring that your finances secure a mortgage and make the dream of homeownership a reality. We will delve into essential strategies to improve your finances, focusing on utilizing tools like Credit Karma or Credit Sesame to prepare yourself for purchasing a house.
Will Leasing a Car Ruin Your Chances of Buying a Home? Maybe—Here’s Why
Realtor.com
FEBRUARY 2, 2023
To up your chances of being approved—at a favorable rate—it’s always smart to pay down debts or pay off existing loans to the best of your ability. Whether you choose to lease or finance a car, you’ll increase your total monthly expenses. When you finance a car, each monthly payment brings you closer to owning the car outright.
Understanding a Loan Pre-Approval 101
Realty Biz
FEBRUARY 22, 2024
Key Takeaways from this Article Gather all documentation to get pre-approved, including your SSN, proof of income, banking information, and tax forms. Make sure all your finances are squared away, including disputing incorrect data on your credit report or paying off existing debts to signal to lenders you can afford your mortgage.
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MBA asks CFPB to extend GSE patch
Housing Wire
AUGUST 11, 2020
By providing an exception to the general QM loan definition’s strict 43% debt-to-income ratio threshold and rigid income and debt verification criteria, the GSE patch facilitates access to affordable mortgage credit for credit-worthy borrowers who fall outside the requirements of the general QM definition.”. “The
How “generation rent” is approaching home buying in 2022
Housing Wire
JUNE 29, 2022
Many millennial and Gen Z future homebuyers are concerned about the effects of personal finance issues like having insufficient savings, increasing debt and low credit when applying for a loan. Today, 78% would apply for a loan with less than the traditional 20% down payment, while more than half (55%) do plan to put down at least 10%.
Opinion: Regulators should focus on banks, not IMBs
Housing Wire
JUNE 9, 2023
Three large and mismanaged depositories failed in the first quarter of 2023, yet progressive partisans like Chopra, Treasury Secretary Janet Yellen, and Federal Housing Finance Agency head Sandra Thompson ignore the public record and continue to fret about nonexistent risk of contagion from mortgage servicers.”
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FHA Loan Requirements: What Home Buyers Need to Qualify
Realtor.com
NOVEMBER 28, 2022
designer491/iStock FHA loans, which are insured by the Federal Housing Administration, help home buyers secure financing to buy a home despite their low income, lack of savings, or poor credit scores—the kind of things that often prevent people from getting a conventional loan. A maximum debt-to-income ratio of 43%.
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