Mortgage Outlook Seems Promising With Election Of New President
Mortgage Outlook For Seem Promising With Trump As President
Happy New Year everyone. 2015 has now come to an end and 2015 mortgage outlook seems promising and positive for first time home buyers, seasoned home buyers, and homeowners thinking of refinancing their current home loans. 2016 has brought on many changes in the mortgage industry such as FHA lowering the maximum FHA lending limit from $410,000 to $271,000 unless the property was in a high cost area. QM, Quality Mortgage: The ability to repay, got implemented, HomePath conventional loans are no longer in existence and Fannie Mae has changed rules on getting a conventional loan after a deed in lieu of foreclosure and short sale from 2 year waiting period after a deed in lieu or short sale with 20% down payment to a 4 year waiting period after the deed in lieu or short sale with a 5% down payment. Another positive new Fannie Mae guidelines is that Fannie Mae has implemented that any mortgage part of bankruptcy, the waiting period will go off the bankruptcy discharge date and not the recorded date of the foreclosure, deed in lieu of foreclosure, or short sale. This will help tens of thousands of home buyers who had a mortgage as part of their bankruptcy without having to wait for the recorded date of the foreclosure.
2015 Mortgage Outlook For Home Buyers
For the past year, 30 year fixed rate mortgage rates have been consistently around the 4.0% mortgage rate mark. One year ARM averaged around 2.5% in the past year. Most mortgage industry analysts predict that 2015 mortgage outlook in mortgage rates is that mortgage rates will not go up by more than one percentage point in 2015. This analysis is based on the track record of the low yields of the U.S. Treasury notes.
For the past five years, the average mortgage rates on a 30 year fixed rate mortgage loan has been consistently stable below the 5.0% mark. The low mortgage rates has stimulated home purchases throughout the country and has real estate prices appreciate consistently in all counties in the United States. Many homeowners who had homes with underwater mortgages are now able to sell or refinance their homes and move on.
2015 Mortgage Outlook: Lenders Loosening Credit Standards
Right after the credit collapse of 2008 and the whole revamp of the residential mortgage industry, mortgage lenders have really tightened credit. Days of stated income mortgage loans have long been gone and the sub-prime mortgage market is now no longer in existence. You need documented income in order to qualify for a residential mortgage loan. Excellent credit but no income documentation will get you no where in a mortgage loan approval. However, if you have income documentation but poor and low credit scores, you can get a residential mortgage loan approval. Since 2010, more and more mortgage lenders are loosening their credit standards and eliminating many of their mortgage lender overlays. This loosening in credit is expected to continue throughout the course of 2015. Both HUD and Fannie Mae is also implementing new rules and regulations with regards to credit.
Average credit scores for conventional mortgage loan borrowers is 750 FICO out of a possible of 850 FICO nationally. According to the United States Department of Housing and Urban Development, HUD, the parent of the Federal Housing Administration, the average credit scores of FHA insured mortgage loan borrowers is 680 FICO. However, a FHA loan borrower can qualify for a 3.5% down payment home purchase mortgage loan with a credit score as low as 580 FICO.
Other 2015 Mortgage Programs
Fannie Mae has brought back the 3% down payment conventional mortgage loan program for first time home buyers. Those who had a mortgage as part of their bankruptcy has a great advantage because the waiting period starts from the discharge date of the bankruptcy and not the recorded date of the foreclosure, deed in lieu of foreclosure, short sale. Those who are W-2 wage earners and have tons of tax writeoffs on their tax returns do not need to worry about submitting their income tax returns. There are mortgage lenders that do not require two years tax returns as long as they are full time W-2 wage earners. Only two years W-2s are required.
2017 UPDATE: Mortgage Outlook Seems Promising With Election Of New President
This BLOG has been updated on March 7, 2017. Mortgage Outlook for 2017 seems promising with the election of President Donald J. Trump. The new President is thinking about abolishing the Consumer Protection Financial Bureau and cutting back on regulations. NON-QM Loans are back and are becoming increasing popular. Mortgage rates seems like it is going to be heading up but the housing market remains stronger than ever. Mortgage lenders seem to want to originate and fund more loans. FHA and Conventional Loan Limits have slightly increased for 2017. The mortgage business is still extremely regulated and many are hoping that the Trump Administration will eliminate the many regulations the mortgage industry has. There seemed no end to mortgage regulations and new guidelines that was being implemented on government loan programs where it made it almost impossible for a loan officer to know all the regulations for every loan program. Many lenders seem to be implementing more and more lender overlays on top of the minimum lending guidelines. The Gustan Cho Team at CrossCountry Mortgage will keep our viewer updated on the upcoming mortgage outlook.