It’s easier to get a mortgage in 2018, according to a new study

It’s easier to get a mortgage in 2018, according to a new study

Looser mortgage qualifying guidelines by Fannie Mae and Freddie Mac over the past few years are beginning to have an impact on mortgage loan applications this year. An analysis published this month by CoreLogic of conventional conforming loans (loans that can be sold to Fannie Mae and Freddie Mac and fit within the loan limits in each location, which is $453,100 nationally and higher in high-cost markets, such as $679,650 in the Washington metro area) for home purchases found that more loans are being approved for slightly riskier borrowers. However, unlike in the early 2000s, today’s borrowers must provide full documentation of their income and ability to repay the loan.

Higher debt levels: In 2017, Fannie Mae also raised its maximum debt-to-income ratio, which compares monthly gross income with the minimum payment on all recurring debt, from 45 to 50 percent. Analysis by CoreLogic found that the share of loans with a debt-to-income ratio above 45 percent rose from... Continue reading full article at: https://www.washingtonpost.com/news/where-we-live/wp/2018/06/20/its-easier-to-get-a-mortgage-in-2018-according-to-new-study/