I bring this up a lot, but it needs to be talked about! Getting a mortgage is not as hard as many young people believe it to be. Loan types, assistance programs, credit standards, and interest rates have changed considerable in the past 10 years in order to make homeownership more attainable. Between low downpayment loans and assistance programs, you can literally buy a home with almost no money down in some instances. Don’t get me wrong, the more money you put down will start you off with equity and lower your monthly payments. But however you are able to buy home will make more sense than spending money on rent. Why the change?
After the housing crisis, it became very hard to get a mortgage. The pendulum swung so far that even former Federal Reserve Chairman Ben Bernanke was turned down for a home loan! The good news is that the pendulum is finally starting to swing the other way. Why? Competition.
Fannie Mae reports that lenders are easing credit standards to gain more customers. Plus, Fannie Mae is helping too. The financial giant, which helps set the underwriting standards for mortgages that are sold to investors, raised its total debt-to-income ratio threshold. This means that more borrowers will qualify for home loans. This could be very good news for Millennials that have student loans. Student debt has been keeping many out of the housing market, but this move might help some Millennials jump in.
Talk with me here about more information on buying your first home!