The Homebuying And Mortgage Process during the coronavirus pandemic is more difficult than it was used to be.
- The coronavirus pandemic has turned the mortgage market upside down
- Although mortgage rates hit an all-time historic low, borrowers with under 680 credit scores are encountering hurdles when qualifying for a mortgage
- Most lenders imposed overlays on credit scores by increasing minimum credit score requirements
- For example, many lenders who had minimum credit score requirements of 580 FICO on FHA loans have increased it to 660 to 680 FICO
- Lenders also raised loan level pricing adjustments (LLPA) on borrowers with under 680 credit scores
- Mortgage rates are higher for borrowers with under 680 credit scores
- The reason lenders have increased credit scores and imposed overlays is due to liquidity issues on the secondary market
In this breaking news, we will discuss and cover the Homebuying And Mortgage Process During Coronavirus Pandemic.
Challenges In The Homebuying And Mortgage Process During The Coronavirus Pandemic
Homebuying And Mortgage Process On Unique Loan Programs
Homebuying And Mortgage Process on Non-QM loans have been halted.
- Non-QM lenders have halted all non-QM loans until further notice
- Many non-QM lenders have gone out of business
- One of the most popular loan programs at Gustan Cho Associates was the self-employed bank statement program with no income tax required
- Gustan Cho Associates expects the resurgence of non-QM mortgages in the coming weeks
- Many lenders stopped doing manual underwriting on FHA and VA loans until further notice
- Others suspended doing FHA 203k loans
- Most lenders have also suspended Jumbo loans during the coronavirus economic crisis until further notice
- Specialty loan programs such as the down payment assistance loan programs and one-time construction loans have been halted until the mortgage markets stabilize