Feds Change Mortgage Rules
The Federal government introuduced new rules for mortgages coming effective October 15th, 2008. Changes included:
1. The elimination of no money down mortgages. All buyers will now have to have a minimum of 5% downpayment on any house.
2. The maximum amortization period for a mortgage is now 35 years as opposed to the current 40 years. This will increase monthly payment very modestly and lower the amount of a mortgage you may qualify for.
3. The minimum credit score required to qualify for a high ratio mortgage is to increase. The exact number has yet to be set but is anticipated to be 620.
4. New loan documentation standards. Basically proof of income, downpayment, etc. will be more carefully verified. No more "taking your word on it".
Until the 15th of October the rules will remain the same. So if you need a no money down purchase or your credit score may be mariginal now is the time to get in a new house. Especially for first time homebuyers. For more information feel free to email me. donmerrifieldjr@remax.net