The Incredible, Flexible, U.S. Mortgage Guidelines – Today’s Mortgage and Real Estate News

So no one told you like was going to be this way This is Dan on your inside team at Growella

It's Monday, May 21, 2018 Welcome to today's Mortgage Minute-and-a-Half To understand recursion, rewatch this sentence To understand recursion, rewatch this sentence And to understand mortgage approvals, throw out the things you think you might know about mortgage approvals

Because there's no such thing as iron clad rules for what does and does not get approved Take the twenty-eight thirty-six rule for example, which as it turns out, isn't actually a rule at all anymore The twenty-eight thirty-six rule suggests that you can't get a mortgage approved if more than twenty-eight percent of your income goes to your monthly housing debt, and more than thirty-six percent of your income goes to all of your monthly debts combined Like credit cards and car payments Twenty-eight thirty-six was a thing in the 80s, but then again, so were piano ties

Today, lenders decision loans differently and simple debt-to-income calculations like that no longer apply For proof, we can see it in Ellie Mae's Origination Insight Report, which aggregates data on millions of loan applications made each year The group's most recent report shows for FHA loans, home buyers aren't twenty-eight thirty-six They're twenty-nine forty-four And, for VA loans, loans for veterans and members of the military, they're twenty-six forty-two

Stats like this are why it's generally bad to use generic mortgage calculators you find with a simple google search Nearly all of those calculator use the same old rules from the 80s which don't get used today So, stop going all Web MD on your home loan Self-diagnosing is bad Talk to a mortgage lender and find out what you can really get approved

The rules are looser than you think Mortgage rates are rising after the weekend, throwing shade on today's buyers of homes Interest rates are up across the board, affecting how much house you can afford to buy Conforming loans, VA loans, FHA, USDA and jumbo — everything's higher The actual rate you get from your lender, though, will depend on close to twelve different factors including your loan size, your credit score, the mortgage program you choose for your loan

In general, VA and USDA mortgage rates are the cheapest of the bunch and, historically, FHA rates beat conventional That might not be the case for you, specifically, though, so make sure to get with a mortgage lender — two or more of them actually — and look for your best combination of rates, fees, and service Don't call it a comeback They've been here for years Home builders

And they're on the frontlines of housing which is why it's a big deal that, after four straight months of pullback, homebuilder confidence is rebounded According the most recent Housing Market Index, a report published monthly by the National Association of Home Builders, builder confidence is up two points to seventy, which is the highest reading for a May in thirteen year and a signal to everyone that rising mortgage rates will not deter today's buyers of homes Sales are up, say builders, and foot traffic is brisk This bodes well for future sales and also means that buyers may have a harder time finding bargains in new homes When builders feel confident, they're less likely to offer concessions, and free upgrades

Which means that buyers get less house for the same amount of money Now, it's already tight out there with home supplies deep in seller's market territory and prices rising month-after-month and this report from the builder trade group might just add to the pressure So, if you're in the market for new construction housing or plan to buy later this year, get with your real estate agent and craft yourself a plan Home affordability is dropping The best deals may be the ones you find today

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