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More homebuyers seek government-backed loans as an affordability lifeline

Housing Wire

The combined cost of mortgages, taxes and insurance now takes up a larger share of household income than it has since the early 1980s, according to an affordability index from John Burns Research & Consulting. Department of Veterans Affairs (VA) loans, which made up 10%, according to purchase loan lock data from Optimal Blue.

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

Housing Wire

By making an offer of compensation, sellers communicate to buyers, as a marketing tactic, that their transaction costs may be reduced. They will continue to charge the highest price the market will bear, and leave buyers with an added up-front cost. High housing prices are caused by a housing shortage.

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The impact of student loans on buying a home

Housing Wire

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.

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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. Even under “normal” market conditions, VA buyers struggle to successfully purchase a home using their benefit.

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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.

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FHA borrowers are getting hammered by rising rates

Housing Wire

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. As interest rates rise, so do the monthly mortgage payments, which could be problematic for low-to-moderate income borrowers, said Alex Naumovych, loan officer at Draper & Kramer Mortgage.

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Mortgage delinquencies are rising. FHA borrowers are feeling the impact

Housing Wire

Certain borrower groups are especially vulnerable, including those with lower credit scores , higher debt-to-income ratios and those who opted for more affordable loan products. Ties to unemployment The year-over-year increase in delinquencies is reflected across multiple market metrics.

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